Charles Allmon Predicts the S&P 500 Will Fall to 450

By on November 1, 2008

Charles Allmon, the 87 year old editor of the newsletter “Growth Stock Outlook,” does not feel stocks will be cheap enough to buy until the dividend yield on the Dow reaches its 20th century average of 7.1%.

Allmon has famously been very stubborn about buying stocks when he feels they are overvalued, which by his definition has happened to be most of the time the last 25 years. Unless interest rates skyrocket, it is doubtful that we’ll see stocks yielding over 5%.

Source:

http://www.forbes.com/finance/forbes/2008/1117/032.html

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