Research from AFG (Applied Finance Group) Our Favorite Research Firm

With the market movements lately we found this research very interesting given the grief the markets have has over the last year. Given extremely conservative assumptions the S&P 500 is 14% undervalued, moderate assumptions 24% and reasonable assumptions the S&P 500 is 34% undervalued. Also worth mentioning, investors as a whole are usually wrong as they cash out at or near the worst possible time and on the other side of the equation, invest heavily at the top. JK