Yardeni model - confused

[vicky_cool400]

Hi
If we get yield as per yardeni model with formula = 6%
Market f/w yield is 7 %
Then market is over or undervalue?
Since, in fed model the value from formula shd be more than treasure to be undervalued

 

[dwheats]

by yield do you mean y(b) - d(LTEG) ?
if so, then the market is undervalued, because equities are offering a higher return than the bond market (adjusted for default risk and growth)…it is a similar rationale to evaluating the fed model

 

[pokhim]

if you mean what i think you mean then the answer is undervalued

 

[hashtag]

#Idonotthinkitmeanswhatyouthinkitmeans
#PB