Nobel Winner’s Math Is Showing S&P 500 Unhinged From Reality

James Tobin, a Nobel Prize-winning economist at Yale University.

Photographer: Hulton Archive/Getty Images

If you sold every share of every company in the U.S. and used the money to buy up all the factories, machines and inventory, you’d have some cash left over. That, in a nutshell, is the math behind a bear case on equities that says prices have outrun reality.

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