Robert Shiller on the Pricey U.S. Market

Nobel Laureate and Yale professor Robert Shiller recently wrote for the Project Syndicate about the comparative levels of market valuation across countries and how, “right now, the United States is…

High Stock Values and the CAPE

The cyclically adjusted price-earnings ratio (CAPE) should not be a focus around current equity price levels, according to a recent Bloomberg article. The CAPE now stands at 30, the article…

Shiller Tracks Past Bear Markets

In a recent article for MarketWatch, Yale professor and Nobel Laureate Robert Shiller shares insights on past bear markets in the U.S. and how the current market environment resembles the…

The Market Valuation Snapshot

In our Hotlist newsletter from last month we took a look at the market’s stretched valuations based on several indicators, and offered insight regarding how actions by the current administration…

Is Shiller's CAPE as Scary as it Seems?

In the 1990’s, economists Robert Shiller and John Campbell created a valuation metric called the “cyclically adjusted price-earnings” ratio, or CAPE. A Wall Street Journal article from earlier this month…

There’s a Hole in the CAPE Ratio

When predicting future real returns of stock markets, the cyclically adjusted price/earnings ratio (CAPE) is a good place to start. The formula, first proposed by guru Benjamin Graham, is pretty…