Stock Allocation = Shiller PE Earnings Yield / ( Shiller PE Earnings Yield + ST Treasury Yield)What is Graham's formula?Decreasing due to Ben Graham's formula comparing ST Treasury Yield to S&P500 Earnings yield.
About 35 / 65 % stock / bond ratio given current yields.
Bonds more attractive at present time.
You can also see Buffett building cash levels, student of Graham.
I mean, I get the conceptual gist of what you're implying, but curious as to the actual formula.
= 2.95 / (2.95 + 5.5) = 35%
you could also use S&P 500 Earning Yield
I used 1 month T Bill
Statistics: Posted by Fat-Tailed Contagion — Mon May 06, 2024 9:28 pm — Replies 107 — Views 14656