Hi

If we get yield as per yardeni model with formula = 6%

Market f/w yield is 7 %

Then market is over or undervalue?

Since, in fed model the value from formula shd be more than treasure to be undervalued

Hi

If we get yield as per yardeni model with formula = 6%

Market f/w yield is 7 %

Then market is over or undervalue?

Since, in fed model the value from formula shd be more than treasure to be undervalued

by yield do you mean y(b) - d(LTEG) ?

if so, then the market is undervalued, because equities are offering a higher return than the bond market (adjusted for default risk and growth)…it is a similar rationale to evaluating the fed model

if you mean what i think you mean then the answer is undervalued

#Idonotthinkitmeanswhatyouthinkitmeans

#PB