Dallas Fed reports the 12mo Trimmed Mean PCE at 1.88%, down a little from the prior month’s 2.01% which in turn was revised higher from 1.96%. The SP500 carries a premium of 19.8% to the Value Investor Index(VII) $2,545 level. The SP500 has recovered ~50%+ from its March low when Value Investors including corporate insiders supported the SP500 when it fell ~11% below the VII.

The 2000 and 2007 peaks for the SP500 represented 100% and 65% premiums to VII. For the current cycle peak, a similar level is expected. The VII is not a precise benchmark especially with the largest 10 issues by market capitalization responsible for most of the recent gains in the SP500. Even with the strong recovery of these selected Mega-Caps, many investment opportunities remain in the remaining issues.