This is your brain on the CFA: https://twitter.com/ValuentumBrian/status/1352522809810018305 …
Even if you used the most extreme forecast of the 10Y (derive from the yield curve assuming zero term premium) you get about 2.5% so ~4% is massively away from consensus.
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If you value SPX using that method but using a risk free rate that isn’t ridiculous and some average for the equity risk premium (avoids circular reference, is relatively stable), you get ~3800. Right where we are.
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