Commentary 
Earlier this year, my Epoch Times article of Feb. 5 attempted to estimate the underlying value of stocks and determine the extent to which stocks were over- or undervalued and by how much.
In February, the S&P 500 Index was at 4,500. With the corporate bond rate of 3 percent, my analysis showed the fundamental value of the S&P 500 was 4,100; stocks were 10 percent overvalued. The article cited that I and many other economists expected interest rates to go higher. As higher interest rates lower the value of stocks, the article concluded that at interest rates of 4 percent, it would reduce the value of the S&P 500 to 3,900….