My article on the valuation of the Dow Jones Industrial Average is updated and suggests that the DOW is probably about 15% under-valued as a best estimate. Of course, that does not mean it is going to jump up 15% any time soon.
Microsoft is updated and rated (higher) Buy at $32.08. This is a “downgrade” from its former Strong Buy rating at $25.06 from September and note that we confirmed the Strong Buy rating still applied at $25.96 to start 2012. In the past two months this stock has surprised many by rising 24%. We also liked it in 2011 and 2010 but it fell modestly in those years.