(New York)

Some investment banks are saying that the worst of the volatility is over and that markets have bottomed (e.g. Goldman Sachs). However, different approaches give very different valuations. For instance, a new research opinion from Vincent Deluard, head of global macro strategy at INTL FCStone, says that fair value for the S&P 500 is 1,800, or more than 35% below today’s value. The method that comes to that conclusion is a discounted cash flow method that tries to derive the value of future cash flows.

FINSUM: In our opinion, this is a total crap shoot (and even more so right now) as the market is being driven by emotion and speculation to an even larger degree than usual.