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So by this logic is it true that if Yahoo and google link to YOU, YOU should also link to Yahoo and Google? Like if yahoo's widgets category links to you, you should like to Yahoo's widget category on your site?
Obviously all incoming links are beneficial, to the PR. However what you link out to - you give pr too. In the best of both worlds, you would want index.htm inbound links off every major SE/Directory and major website in the world, and not link at all to anyone from your own site.
Pagerank is only to do with sites linking to you.
The confusion might have arisen because your site's *relevance* for a particular search might be determined by whether you link to sites that are also relevant for that search term. I say "might" because I don't think anyone knows for sure, but in my own field the top-ranking pages all link to relevant sites. I've just linked my home page to other relevant sites, and I'm hoping that the next update will lift us a few places.
Linking to Yahoo etc would not benefit you, because those sites would not be relevant to your site's content (at least, so I assume).
