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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (17033)	12/30/2001 1:55:29 PM
From: ajtj99	Respond to of 99280

As for the Fed model of valuation, I believe if you use earnings projections like First Call's and discount them a bit for over-zealousness, you can get a good fair-crash value for the market. I now believe the Fed model, when applied properly with a realistic estimate of earnings, can provide a decent floor for the market. However, not trading beyond a floor will leave you out of most of the market in anything other than a depression, IMO. If you are using overly optimistic earnings projections for the model, it can possibly be useful, but what good is it if you use goofy numbers.