Tuesday, August 4, 2009

SP500 Overvalued

Jeremy Grantham puts fair value at 880 on the S&P 500. That seems a bit precise. Let's call it 900.

So the SP500 is about at least 100 points overvalued at this point. I think all this momentum seems to be priced into the market. Any earnings warnings or shortfall will get crushed. So proceed with caution at this point.

A number of employment will be out during the next three days. I'll be watching to see how they compared to estimates.

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