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…
Tag: Market Valuation
Kaissar on Stratospheric Stock Valuations
The biggest question faced by U.S. investors, according to a recent Bloomberg article by columnist Nir Kaissar, is whether “the stock market can maintain its historically high valuation, a perch…
Revisiting the Market’s Valuation and the Value of Value
By Jack Forehand, CFA, CFP® (@practicalquant) — A few months ago, I wrote an article where I looked at the current valuation of the market, and some areas that looked relatively attractive on…
Going from Dividend Aristocrats to Dividend Kings Using Quality and Value
Something happened recently that has never happened before in the market. If you take the current rate of inflation and compare it to the S&P 500’s earnings and dividend yield,…
A ‘Red Flag:’ The S&P 500 Inflation-Adjusted Yield is Below Zero
The dividend and earnings yield of the S&P 500 is at a record low—even though it still beats that of Treasuries—and is raising some concern. This according to a recent…