Fed Model = Earnings yield of 10 year treasury compared to earnings yield of index
1) Ignores risk premium
2) Nominal vs. real comparison
3) Ignores growth
Yardini Model = A rated Corporate - 0.1 LTEG
Could it be when it is a very high inflationary period?
Fed Model = E1 / Po and since the growth is high E1 is large and the earnings yield is high aka showing undervalued.
Yardini = showing the long term growth rate which is much more, so the A rated corporate yield is higher aka showing that the market is overvalued?
发表于 2011-7-11 19:36
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