Flash: Market Undervaluation Equals Low of March 2009 5-20-10
Posted By admin on May 21, 2010
The S&P 500 now 51% undervalued relative to Treasuries
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- S&P 500 is down 10.9% from April high, down 2.8% year to date – so far it’s a correction that falls within the bands of “normal”.
- The S&P 500 has been this or more undervalued only twice since 1970 – it was 59% undervalued in December 2008 and 50.1% undervalued at March 31, 2009.
- The S&P 500 was up 23% 12 months after Dec. 2008 and up 47% 12 months after March 2009.
The market is cheap and oversold. Today may be the point of the “THUD”
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