Readings Vary with Valuation Metrics
In a July 2 column, I wrote about how the Fed Model (a.k.a. Greenspan’s Model) indicated that stocks were undervalued by about 25% relative to bonds. To review, the model basically compares the forward earnings yield on the S&P 500... Read More →
Protection Against a Housing Collapse
I’ve been worried about the housing market for a couple of years. The enthusiasm, bidding wars, blind optimism and the simple fact that so many of my acquaintances think they’re so darn smart because their houses are appreciating, reminds me... Read More →
Revisiting the Fed Model
Remember the Fed Model? If your memory needs refreshing, here’s a quick review. For years, there’s been a strong correlation between the earnings yield for the S&P 500 (inverse of the forward price-to-earnings ratio) and the yield on the 10-year... Read More →