fed model formula

With the markets breaking all-time highs last week, it begs the question of just how high they can go.
The S&P 500 is at 1,569 points, and the bears would say it is completely overdone. With a sluggish economy and a growing federal deficit, you might be prone to believe them.
But there is a little-known indicator - one that became very fashionable between 1982-2007 - that tells us something else entirely. Noted for its accuracy over that period, it actually suggests that stocks should double from here.

Here's what you need to know about the "Fed Model."