Hypothesizes the relationship between the market return of equities and long-term Treasury notes suggesting that the returns on 10-year Treasury notes should be comparable to the S&P 500 earnings yield. A popular model for valuing equities, although it is not endorsed by the Fed.
Related information about Fed model:
- Fed model - Wikipedia, the free encyclopedia
The "Fed model" is a theory of equity valuation that has found broad application in the investment community. The model compares the stock market's earnings ...
- Fed Model Definition | Investopedia
A model thought to be used by the Federal Reserve that hypothesizes a relationship between long-term Treasury notes and the market return of equities.
- The Flaws in the Fed Model - Barrons.com
Jun 9, 2012 ... A fabled stock-market predictor doesn't work. Could Europe be about to do the right thing?
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Sep 20, 2011 ... CHAPEL HILL, N.C. (MarketWatch) — I have some very bullish news to report.But it comes with a catch — a very big one, in fact.First, the ...
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Jun 9, 2012 ... In this weekend's Barron's, Mike Santoli has a very simple criticism of the (so called) Fed Model for determining if equities are cheap or ...
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Nov 15, 2012 ... One of the most commonly cited 'bullish' memes for stocks is the so-called Fed Model (or Equity Risk Premium) or more simply - the fact that ...
- Interest Rates And Equity Valuations - Deconstructing The Fed Model
Sep 18, 2012 ... In the roaring 90s, the talismanic metric for analyzing the stock market was the Fed model. Under the Fed model, the ratio between stock prices ...