Uh-Oh

If you are a member of plastic pocket protector set, or just a wannabe, this entry at Econbrowser is all for you.  It provides a mathematical model showing fair market values based on historical dividend payout.

The conclusion is that if dividends are not dramatically cut, current fair market value of the S&P is 830.  If dividends are cut to Great Depression era levels, fair value of the S&P is 608.

I found this just after reading the FT article below…

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