Fed Model

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Dictionary Says

Definition of 'Fed Model'

A model thought to be used by the Federal Reserve that hypothesizes a relationship between long-term Treasury notes and the market return of equities. Many security analysts use this model in valuing equities.
Investopedia Says

Investopedia explains 'Fed Model'

The Fed doesn't endorse this tool. In fact, it was named the "Fed model" by Prudential Securities strategist Ed Yardeni.

This model suggests that returns on 10-year Treasury notes should be similar to the S&P 500 earnings yield. Differences in these returns identify an overpriced or underpriced securities market.
Search results for

'Fed Model'

  • Breaking Down The Fed Model

    http://www.investopedia.com/articles/stocks/08/fed-model.asp
    Learn what pundits mean when they say that stocks are undervalued according to
    the Fed model. Continue to Site ยป. ... Breaking Down The Fed Model. ...

  • The Fed Model And Stock Valuation: What It Does And Does Not Tell ...

    http://www.investopedia.com/articles/03/112703.asp
    The Fed Model And Stock Valuation: What It Does And Does Not Tell Us. ...
    Advertisement - Article continues below. The Fed model as of Nov. ...

  • How Much Influence Does The Fed Have?

    http://www.investopedia.com/articles/stocks/08/monetary-policy.asp
    ... poorly. For more insight, read The Fed Model And Stock Valuation: What It
    Does And Does Not Tell Us and Breaking Down The Fed Model. ...

  • 5 Consequences Of The Mortgage Crisis - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1110/5-Consequences-Of-The-Mortgage-Crisis.aspx
    ... (Learn what pundits mean when they say that stocks are undervalued according
    to the Fed model. Check out Breaking Down The Fed Model.). ...

  • The Taylor Rule: An Economic Model For Monetary Policy

    http://www.investopedia.com/articles/economics/10/taylor-rule.asp
    ... The Fed should lower rates when inflation is below the target level or when GDP ... This
    model aims to stabilize the economy in the short term and to stabilize ...

  • How The Federal Reserve Manages Money Supply

    http://www.investopedia.com/articles/08/fight-recession.asp
    ... An increase in the ratio will have the opposite effect. (Read more on this subject
    in Breaking Down The Fed Model.) The discount rate is the interest rate that ...

  • How Interest Rates Affect The Stock Market

    http://www.investopedia.com/articles/06/interestaffectsmarket.asp
    ... see more on the Federal Reserve, read Get To Know The Major Central Banks, The Fed
    Model And Stock Valuation: What It Does And Does Not Tell Us and Formulating ...

  • Greenshoe Options: An IPO's Best Friend

    http://www.investopedia.com/articles/optioninvestor/08/greenshoe-option-ipo.asp
    ... (Learn about the factors affecting stock prices in Breaking Down The Fed Model and
    Forces That Move Stock Prices.) The Greenshoe Option in Action It is very ...

  • Looking Deeper Into Capital Allocation

    http://www.investopedia.com/articles/basics/07/capitalallocation.asp
    ... see Introduction To Fundamental Analysis, Relative Valuation: Don't Get Trapped
    and The Fed Model And Stock Valuation: What It Does And Does Not Tell Us. ...

  • Financial Concepts: Capital Asset Pricing Model (CAPM) ...

    http://www.investopedia.com/university/concepts/concepts8.asp
    Financial Concepts: Capital Asset Pricing Model (CAPM). ...

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