Relative Real Value of S&P500: 16% under-valued!


Greed vs Fear Index scores for the US S&P500 – May 31, 2012:

Greed vs Fear index value: -77.1

Greed vs Fear current state:  Fear

Greed vs Fear index value change:- From last month: -29.3 (figures are corrected when CPI data is released).

Over past 12 months: -35.5

Relative current value of S&P500: -16.3% (underpriced)

Current value change:- from last month: -5.8% Over past 12 months: -7.1%

S&P500 Relative Real Value as at May 31, 2012

Periodically I add a graph comparing the current market condition to that experienced during the period 1950-84.  It tells an interesting story…:

Comparison of current market state (S&P500) against the period 1950-84