S&P 500 Combined Fair Market Value - 3rd QTR 2010

Attached below is the comparison of Professor Robert Shiller's Cyclically Adjusted Price to Earnings Ratio (CAPE 10) vs Nominal for differing time periods.

Apparently - Jeremy Grantham agrees with fair value around 900 - about 17:00 minutes into interview!

And cash has a— a virtue that people don't appreciate fully. And that is its— its optionality. In other words, if anything crashes and burns in value— say the U.S. stock market, if you have no resources, it doesn't help you. If the bond market crashes, and you have no resources, it doesn't help you. And what cash is is an available resource. It buys you the right to buy the U.S. market if the S&P drops from 1,220 today to 900, which is what we think is fair value.





Full report below:
CFMV-Q3-10

S&P 500 Combined Fair Market Value - 2nd QTR 2010

Attached below is the Combined Fair Market Value for the 2nd Quarter for the S&P 500.  This compares the Cyclically Adjusted Price to Earnings ratio created by Professor Robert Shiller to simple nominal terms.

Full report is located here:

CFMV-Q2-10-Final

Cyclically Adjusted Price to Earnings Research

http://dshort.com/articles/guest/Chris-Turner-CAPE-1006.html