Asset value of an index research

Discussion in 'Economics' started by Runningbear, Aug 19, 2009.

  1. Hi guys,

    A couple of month's back I was watching Bloomberg or one of the other business news channels and they had a guy on who produced some reseach comparing the asset value of the index to the actual share value. It was about the same time the market bottomed.

    At the time he said that historically major market bottoms tended to peg back to the underlying asset value of the companies within the index and he indicatated that we may not be far from the bottom because we were nearly equal.

    In other words, the market was trading near the theoretical liquidation value of the assets owned by the companies within the index.

    His call turned out to be an extremly accurate.

    Can anyone direct me to where I can find figures comparing the asset value of an index to the share value for the S&P 500?

    thanks in advance,

  2. 1) Take it with a grain of salt. The call may have been only "randomly lucky" and not "exactly correct".
    2) Whether a closed-end fund goes from a premium to parity with respect to its underlying stocks or if a stock's price trades down to its book value, each is a subjective thing.