Yardeni model

Hi to everybody,

I really have difficult to get the logic behind this model. Anyone could give me an explanation?


Yardeni sorry

It’s derived from FED model which says stocks are undervalued if SPX yield is > on 10Y T-Bonds yield.

Yardeni went steps further by incorporating a corporate bond risk premium and uses a proxy for earnings growth (LTEG).

Thanks Flashback.