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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: pater tenebrarum who wrote (16944)6/11/1999 6:12:00 PM
From: Sonny Blue  Read Replies (1) | Respond to of 99985
 
Heinz,

Use this page and enter the corporate earning growth rate and long bond yield. The calculator would compute over/undervaluation of the S&P:

yardeni.com

Currently, the S&P500 is about 50% overvalued (earning growth=15%, bond yield=6.135%)



To: pater tenebrarum who wrote (16944)6/11/1999 6:17:00 PM
From: Ed Weider  Read Replies (1) | Respond to of 99985
 
Heinz,

Ed Yardeni of Deutsche Bank has all this information and more. Here' a link to the pdf file that has a Report/Charts of the Fed valuation model.

The model valuation stands at 37% overvalued in May.
It also has P/E valuations of 17.2 as of june 4th

The Fed's valuation model is based on the following:

Expected Earnings (I/B/E/S/forward 12 months) divided by
10 year US Treasury Bond Yield

yardeni.com

He's been my source for economic studies for a few years. FREE.
I'm sure some of you already know of him but he's worth mentioning again.



To: pater tenebrarum who wrote (16944)6/12/1999 4:41:00 PM
From: Trey McAtee  Read Replies (1) | Respond to of 99985
 
heinz--

why? who knows. why is something 'worth' 150 dollars, then the next day worth 200? the market is irrational.

what is going on now, IMHO is even worse. its irrationality veiled by a sense of rationality.

i agree with you, re: rates asserting themselves. however, i dont see a real case for rates to go up or even stay where they are.

i guess the feds model depends on how they are evaluating the market. thats something i would be interested in.

good luck to all,
trey