3 Sept 2016 (AFR) -Trying to find value when valuation measures don’t work

(3 September 2016, AFR, p27, by Philip Baker)

‘There was a time when Blackstone Group strategist Byron Wien, who at 83 years of age has been working on Wall Street for more than 50 years, would plug in the yield of the US 10 year bond yield to help him value the sharemarket. Not anymore. If he did that these days he’d come up with a fair value for the blue chip S&P 500 index of 2500, well above it’s current level of around 2170. It worked in the 1980s and 1990s when he was a strategist at Morgan Stanley, but it’s been locked away in a filing cabinet now that bond yields are at record lows.’

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