Important to note when you hear anyone talking about bubbles today. The last two “bubbles” (housing and internet) featured an S&P500 40% to 50% ABOVE its intrinsic value…..we are nowhere even close to that today.

“Davidson” submits:

Dallas Fed reports 12mo Trimmed Mean PCE-1.6%. This places the Vaue Index higher at $2,118 vs. SP500 $2,180 ($SPY) today.

Inflation is part of the Natural Rate capitalization calculation. Falling inflation results in higher levels for the Value Investor Index and justifies higher market valuations.

Screen Shot 2016-08-25 at 4.26.14 PM