Fed 'model' predicts stock gains
Although not officially endorsed by the Fed, the model was teased out of a report the Fed made to Congress back in 1997. The detective: Deutsche Bank chief strategist and economics guru Dr. Ed Yardeni. He's adapted and used the model, which he calls the Fed's Stock Valuation Model (FSVM) with a high degree of accuracy ever since.
The model essentially compares bonds, using
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