Only rabid bears used to say that shares should sell at inflation-adjusted book value – “Tobin’s q”, or about 910 for the S&P 500. But with the index dipping below that, Andrew Smithers, who popularised q, looks prescient. The bad news: market troughs are typically 50% of q.Sign up to read the rest of this subscriber-only content, or if you are already a member please sign in here.
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