SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Gary105 who wrote (44214)10/24/1999 3:10:00 PM
From: Lucretius  Respond to of 94695
 
its pretty simple. expected earnings on the S&P divided by the yield on the 10 yr treasury= "fair value"

here's a long term correlation:

formstar.nis.za

its a fairly simple model and many have much more complicated ones that claim to explain today's mania... of course you have to believe in the new era for those models to be believable. -g-

one thing is for certain: REVERSION TO THE MEAN IS INEVITABLE, and it will NOT be pretty or "controlled" in any shape, form, or fashion.. once she gets rollin.. there will be a panic, period.