Jeremy Grantham, as we see on the Bloomberg screens, is saying that fair-value at this point on the S&P 500 is around the 950 mark. Internal work we have done would tend to support this assertion.
The market is so oversold that a bounce is likely, but everyone is anticipating this so one wonders whether Bob Farrell’s Rule #9 is going to kick in and prevent the oversold rebound from occurring
Update: it was encouraging to see that U.S. foreclosure filings drop 35% last month to a four-year low. It would seem as though greater efforts are being made by the lenders and government officials to find ways to have delinquent borrowers remain in their homes. The idea being floated around Washington of having the GSE’s buy up foreclosed properties and rent them out to investors has considerable merit as well, in our view.