S&P 500 May Jump 70% on Valuation, Economy Rebound, Fisher Says

"Stocks are cheaper compared to long-term interest rates than they have been in anyone’s life,” he added.

Wall Street strategists estimate that S&P 500 companies will earn a total of $47.45 a share this year, according to the average projection of 11 forecasters surveyed by Bloomberg News. That gives the index a so-called earnings yield of 5.48 percent, dividing by yesterday’s close. The 10-year Treasury bond is paying 2.84 percent, according to data compiled by Bloomberg. "
http://www.bloomberg.com/apps/news?pid=20601087&sid=aSOmYN8XM3Rc&refer=home

Earnings yield compared to interest rates?The reason risk free rates are so low its because the market thinks the economy is so bad

 

Ken Fisher

One of a few goodies:

12/10/07 : "...there's room for more of a bull market ahead. I want to be the first to say we definitely are in a New Era of above-average returns...I'm expecting another above-average year ahead, an easy one. ...buy stocks and be happy."

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This guy should be a fixture on Kudlow and Kronies.

 

Some guys here make fun of my calls...but Ken Fisher is just about as accurate as a coin-flip. Some of his calls went busted wildly like the bottom of the homebuilders in 2006 and then the double bottom on the S&P in Spring of 2008. There were individual stock calls that turned into penny stocks...

 

His opinion is worth nothing. It seems you are an investor, and this is a trading site.

 

Steve Leuthold, whose Grizzly Short Fund returned 74 percent last year betting against U.S. stocks, said the Standard & Poor’s 500 Index will surge to 1,100

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a0SCGuHA4VAM

 

I really dont get where people pull some numbers from (out of their ass one could assume)... large unemployment, bad consumer sentiment, potential for inflation, massive debt problems still linger.... where the hell does 70% come from?

 

What a worthless opinion, S$P isnt going anywhere anytime soon, sit back and relax, you will be able to buy the markets down at these levels for a verrrrrry long time.

 

The appropriate yield comparison is between equities and corporate bonds, NOT equities and Treasuries. By that measure, equities don't look particularly cheap.

 

New Era. New Economy. Goldilocks Economy. Used car salesmen.

 

Isn't this guy from IBD?

I think their top 100 stocks probably fared the worse in the last 12 months of any publication I've ever read.