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.

Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (14940)	5/12/2005 1:14:39 PM
From: MrGreenJeans	Read Replies (2) \| Respond to of 25522

Time for an Optimistic Post The Federal Reserve Model pertaining to equity prices yields 1/4.5% (I'll assume a slightly higher rate on the ten-year note than currently quoted)= an equity market price-earnings ratio of 22.22 times earning on the S and P 500. If one assumes a median forecast for 2005 S and P earnings of $70 that would yield a fair market value of about 1550 for the S and P according to the Federal Reserve. The model has been a good predictor of stock prices both undervalued and overvalued over the past number of years. At 1170 for the S and P index as I write this the indications are the market is 30% undervalued. Martha, back up the truck, don't stop me from buying, pass me the flac jacket and batton down the hatches because the attacks from this board are about to begin! MGJ