ABSOLUTE VALUATION

The table shows that GDP growth is comprised of inflation, productivity and population growth. The EPS or earnings per share growth of the stock market equals the sum of inflation and productivity growth while share growth equals population growth (these are proven; and not mere assertions, see this paper for a more full discussion and proof that there is no "equity premium" at the market level). The equity premium thesis assumes full dividend yield reinvestment which is infeasible since share growth equals population growth and is much less than the dividend yield - thus there is no equity premium at the market level... The after-tax long bond yield requires a real return equal to productivity growth unless the money supply is manipulated making this impossible as at present... This site shows how a new asset valuation principle: Required Yield Theory; offers the most accurate public domain valuation model for the stock market, gold and bond yield. Subscribers receive as-warranted..