Subject: Re: OT = large cap valuations
I hate to break this to you, but the Fed model has gone the way of the dodo bird. It is extinct and useless.

An even better debunking is from 2003, Clifford Asness' article "Fight the Fed Model", which pointed out that it didn't even work *IN* sample - there was only a specific range of dates that it ever looked plausible, it never worked before or since.

NOW you tell me? :-)
And I've been posting the Arezi ratio and the Fed ratio for all these years. ;-(

I guess I'll keep posting it out of habit. Caveat emptor!

Elan