Report Detail Summary

Market Valuation Jitters: Credit or Tax Related

August 20, 2007

We are not ready to concede that the credit abundance is the sole or even the most important reason for the change in absolute and relative market valuation across asset classes. The risk premium story only tells us about the denominator of the capitalized earnings model. We will also focus on the macroeconomic changes that could help explain the changes in the numerator of the capitalized earnings model.

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