Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.


|Includes: SPDR S&P 500 Trust ETF (SPY)

 I just published my latest analysis of equity market valuation.

The S&P 500 Index is overvalued on the basis of the $40.00 trailing earnings but this takes no account of the fact that Q408 losses continue to deflate trailing earnings. 

Q209 earnings were about $14.00, an annualized level of $56. On that basis, equities are more attractive.

Disclosure: no position.

For those willing to use forecast earnings, equities are quite attractive with 17-25% upside.

The report debates the pros and the cons, concluding that, unlike last March when valuation levels were factually attractive, current valuation levels are not quite as compelling.

See the full report on my blog at