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Spencer Jakab has highlighted growing attention to the so-called Fed Model for stock valuation, according to a summary by Alan Reynolds. Jakab also refers to Bob Shiller's CAPE model, describing it as 'always-bearish' and noting its backward-looking ten-year perspective.
Reynolds points out these differing approaches to evaluating whether stocks are cheap.
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Alan Reynolds previously summarized Robert Hall’s view that private sector interest rates did not fall systematically during the crisis in a 2010 interview. The discussion focused on household and business borrowing costs. This earlier assessment provides context for current debates around valuation models and the impact of monetary policy.