fed and yardeni

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?

wrong

what part?

first part

THANKS! GREAT HELP!

This is correct Skip

thanks Thommo, i thought it was, but wasnt sure. gotta watch out for these noobs.

Correct.

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…

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? false market overvalued/undervalued depending on whether the SP eaning yield is higher or lower than Yardeni return

check your books my goodman

When the Earnings yield is higher, buy Equity. …as always, buy anything “relatively” undervalued.

spot on Skipp

Correct Skip