fed and yardeni return, whether, respect, higher, correct

LPoulin133

these are the same with respect to the markets being under/overvalued depending on whether the SP Earnings yield is higher or lower than the Fed Model bond return and the Yardeni return right?

Fed Model gives LT Bond at 5%, SP 500 Earnings at 2 %. Equities are overvalued. If the Yardeni Model yields 5% and SP 500 Index is yielding 2%, equities are also overvalued correct?

cityboy

This is correct Skip

mp3bu

why it has to be equity being overvalued? maybe bonds are undervalued and equity properly valued...who said bond investors are right by default?


....just busting chops....

dyga

check your books my goodman

infinitybenzo

When the Earnings yield is higher, buy Equity.

...as always, buy anything "relatively" undervalued.

nannan66

spot on Skipp

ll11

Correct Skip