Zeev's Turnips Patch-No Politics (ZEEV)

[wahz]

Here it is, the last set of numbers: most undervalued since 1979, if we ended the month around here(it is a month end reading)
http://205.232.165.149/public/stvm_d.pdf

At the 1982 bottom, from which the sp rallied 75% in a few months, we were only about 15% undervalued.


An initial spike down this week may actually drive the sp to well past -35% undervalued, if bond yields drop as they likely would. If that happened, the market would be as undervalued as ever in its history. I have seen yardeni talk about -40% being the record.

Oh, and if anyone thinks its because bookeeping is crappier now than then,and therefore the sp projections are way off, I think this falls into the category of "it's different this time." Bookeeping in the 30's was a joke, and it sucked in the early 70's mania too.