Exchange Currency

Fed model

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:
  1. 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 ...
     
  2. 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.
     
  3. 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?
     
  4. Fed Model more bullish than in decades - MarketWatch
    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 ...
     
  5. Why the “Fed Model” Doesn't Work | The Big Picture
    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 ...
     
  6. Equity and bond markets: Burying the "Fed model" | The Economist
    12 hours ago ... IF YOU invested in equities in the 1990s, you were bound to hear, sooner or later, about the "Fed model". This, I should hasten to add, was not ...
     
  7. The 'Broken' Fed Model In 3 Simple Charts | ZeroHedge
    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 ...
     
  8. 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 ...