Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

The "fed model" suggests that under a PE of 24 (based on the 10 years bond yield of 4.21 or so) the market is undervalued. The question is will the 500 bring in $39/share next year or not. I have no answer to that question. I think it is also important to understand that in bear markets excess undervaluations are the norm, and we did not have that, at least not in major sectors. Many individual stocks have reached excessive under valuations, but I am not sure many of the 500 are in that category.

Zeev