An article in Forbes offers an approach for protecting yourself against market volatility, named the Buffett-Shiller method for the two market watchers who inspired it. Rather than a formula for…
Tag: Cape Ratio
Two Shiller-Inspired Metrics, Two Wildly Different Valuation Stories
Yale professor and Nobel laureate Robert Shiller popularized the cyclically adjusted price-to-earnings ratio, but he’s moved on to a different metric called the excess CAPE yield, contends an article in…
In Today's Market, Dollar Cost Averaging a Better Play Than Lump-Sum Investing
Investors who may be sitting on cash due to nerves about high valuations, rising interest rates and market volatility might be missing out on huge gains, according to Bloomberg columnist Ben…
Shiller Says Bull Could Run for a While
When asked for his outlook on the market in a recent CNBC interview, Nobel Laureate Robert Shiller says investors should keep some stocks in their portfolio because the market “could…
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…