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词汇 Fed model
分类 英语词汇 英语翻译词典
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Fed model

英语百科

Fed model

Original graphic from Humphrey-Hawkins report of July 22, 1997
Fed model equilibrium comparing S&P 500 earnings yield and 10-year Treasury yield. The descriptive validity of the model is limited before 1982 and after 2007.Re-specified Fed model comparing S&P 500 earnings yield with after-tax corporate bond yield (average rating=Baa). Before 1982 the equilibrium could not be reached due to legal limitations in repurchasing shares (SEC Rule 10b-18).Is the Fed model miss-specified? Thirty years of investor money illusion (left) or deliberate company policy (right)?

The "Fed model" is a theory of equity valuation that has found broad application in the investment community. The model compares the stock market’s earnings yield (E/P) to the yield on long-term government bonds. In its strongest form the Fed model states that bond and stock market are in equilibrium, and fairly valued, when the one-year forward-looking earnings yield equals the 10-year Treasury note yield (Y_{\text{10}}) :

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