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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: NickSE who wrote (13617)5/12/1999 12:40:00 AM
From: studdog  Respond to of 99985
 
<< FED MODEL - Stocks 40.3% overvalued as of May 11 close >>

The highest recorded level for this surprisingly predictive model was 34% overvalued in October 1987. We know what happened then. So, we have a limited number of scenarios to consider.
Either rates will fall like a stone, the S&P500 will crash, or this model will be relegated to the dustbin of the new paradigm. Which will it be?
Greenspan suggested he didn't think it would be the latter.

Karl