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Strategies & Market Trends : Steve's Channelling Thread

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To: Zeev Hed who wrote (15740)5/13/2001 10:13:52 AM
From: Crimson Ghost  Read Replies (1) of 30051
 
Zeev:

The S&P 500 is again heavily overvalued based on the Fed's model relating fair stock valuation to earnings expectations and 10-year Treasury yields. The S&P was slightly undervalued at the lows. But with the market up sharply the last 6 weeks and T-bond yields back to 5.5%, the S&P 500 now is about 20% overvalued. Hard to envision much more upside under these conditions.
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