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The Intrinsic Value Of The S&P 500 (April 27, 2012)

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

With US GDP at $15.46 trillion and Moody's Aaa bonds yielding 3.95%, the intrinsic value of the S&P 500 index as measured by BV is 2098.11.

By comparison, the S&P closed at 1403.36 on April 27, 33% below fair value.

Understanding Brock Value charts

The red and green lines found on many of the BV charts on this site are 0.33 standard deviations over and under BV. These lines fence in the normal range of the market. When the market is above the red line, ten-year returns tend to be lower than average. When the market is below the green line, ten-year returns tend to be higher than average.

The red and green lines are one-third of a standard deviation from BV, the white line.

For more about Brock Value, please visit my site.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.