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Jesse Felder

I wonder how this model would look using peak earnings (something i've seen shiller use to smooth p/e ratios over long periods) because according to this graphic '74, '80 and '82 were not times when stocks were attractive - something we all know to be simply inaccurate.


I would adjust that treasury yield to reflect what a normal maket yield looks like say uinflation plus real return. Stocks are massivly overvalued on that basis


In the first example you say "undervalued by 60% relative to the bond market". How so? I hope you're not implying the 2 yields should ever be the same??? It's called "risk-adjusted".

I don't get the point of this analysis other than to prove it's worthless.

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