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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (39906)	5/11/1999 1:36:00 AM
From: studdog	Read Replies (2) \| Respond to of 94695

Haim, It is reminiscent of 1987 in more ways than one. I apologize for bringing something up as mundane as valuation, but I have been following the FED model of stock valuation popularized by Ed Yardeni (see yardeni.com In this valuation model, the S&P 500 is calculated to be 37.5% overvalued as of tonight's close. The highest reading ever for this model was 34% just prior to the October 1987 crash. This model has correlated very well with the market and has never been this far out of whack. Either bonds are going to rally like crazy or stocks are going to crash, or this model is going to be relegated to the dust heap of the new paradigm.