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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: sylvester80 who wrote (90365)7/2/2002 10:26:37 PM
From: mishedlo  Read Replies (1) of 99280
 
The "Fed stock valuation model" shows that the S&P 500 is about 17 percent below where it should be. Besides a brief period after Sept. 11, this is the first time the indicator has flashed "undervalued" since the Russian debt crisis of 1998

The first time huh?
17% huh.
It was not flashing 10% ago or 9% ago or 8% ago or 3% ago.

And what about the "quality" of the earnings cof cof that make the stocks undervalued. Is that a pro forma PE of 17 of the real PE of 40 (which does not even take into consideration the lies about earnings or pension funds etc).

By any reasonable measure the S&P is 20-60% overvalued.

M
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