The Case for the S&P 500 at 600

By on November 4, 2008

Henry Blodget (remember him?) writes about Jeremy Grantham’s analysis which indicates the market could fall 40% from here. Although I respect Grantham, I don’t think the pundits are giving enough weight to the current low level of interest rates, which tends to push up stocks to a higher valuation than when rates are high. Maybe interest rates are destined to rise from here, but with a weakening economy, it doesn’t seem to be a high probability.

Marker: S&P 500 @ 1,005

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