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Strategies & Market Trends : ahhaha's ahs
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To: Ron Dior who wrote (4615)6/25/2002 5:41:13 PM
From: ElsewhereRead Replies (1) of 24758
 
There hasn't been much downside (yet?). The Fed valuation model (Biggs is one of the followers) is the inverse 10-year T-bond yield (4.82% -> "PE 20.9") related to S&P 500 PE (about 20); the current ratio of about 1 indicates fair value.

If I remember correctly the famous "irrational exuberance" speech of Greenspan was in December 1996 at a DJIA of 6900. What was a peak then feels like an abyss now. It would mean a 25% undervaluation which is not out of the norm. Let's see if we'll hit an exuberance bottom during the autumn doldrums.
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