Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (40360)	5/27/2002 6:39:11 PM
From: UnBelievable	Respond to of 209892

Searching for Value in the U.S. Stock Market The attached link is to a recent publication of the Federal Reserve Bank of San Francisco. It is an excellent article. While this will clearly end very badly, it will not be without a significant amount of irony. A brief excerpt: "Still, it may be worthwhile to consider the model's predictions for the year-end 2002 level of the S&P 500 index. Given a current 20-year government bond yield of about 5.5% and employing the end-of-sample volatility measures for stocks and bonds, the model predicts a P/E ratio of 24.1. Applying this multiple to the S&P's estimate of $36.34 for reported earnings in 2002 yields a predicted value of 876 for the index--about 20% below the current level." frbsf.org