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Category Archives: Equity

4.19 – THE FED MODEL

04-Jan-09

The Fed Model is a theory of equity valuation used by some security analysts that hypothesizes a relationship between long-term treasury notes and the expected return on equities.
According to this valuation model, in equilibrium the real yield on the 10-year U.S. Treasury Bonds should be similar to the S&P 500 earnings yield (that is, S&P [...]

Sunday Special – 2007’s champagne moments

23-Dec-07

A few choice cuts from a volatile year for the market:
1. Cramer calls out Ben Bernanke just after Bear Stearns hits the market – Aside from the theatrics of CNBC’s Jim Cramer, what I’ll remember most was the timing. Cramer was spot on in his analysis and for that it is Plain Vanilla’s best moment [...]