Despite overvaluation concerns, the rise in the S&P 500 Index appears to be earnings driven and not speculative. The RPF Model shows that the S&P 500 is undervalued by about 7%, narrowing from the 30% undervaluation estimate that I reported in my September 28, 2010 articleand the 20% that I reported on November 8, 2010. This suggests continued opportunities for investors, corporate buybacks, and M&A.
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