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.
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.