S&P 500 Intrinsic Value Update – All Clear Ahead

S&P 500 Intrinsic Value Update – All Clear Ahead

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.

An Hour With Ben Graham

This interview took place on March 6 1976. At the time, a struggling insurer, Government Employees Insurance Company (GEICO) was making headlines as it teetered on the brink of bankruptcy. Ben Graham understood the opportunity GEICO offered, and that’s where the interview began. Ben Graham and his partners had, at one time, been significant shareholders Read More

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.

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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a RealMoney.com contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.

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