Andrew Smithers Says S&P 40% Overvalued, Banks and End of Quantitative Easing Will Be Catalysts

Economist Andrew Smithers of Smithers & Co. thinks the S&P is overvalued by 40% (based on Q-ratio). A 40% cut from the October 23 interview would equal 771 on the S&P. Two of his catalysts:

• Banks will dilute equity to raise more capital.
  
• End of quantitative easing will bring markets lower.

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