Does the “Shiller P/E” need a revamp? Some well-known strategists say yes, but others — including Yale Economist Robert Shiller himself — say no. While most strategists and publications use…
Tag: Shiller P/E
The 10-Year P/E & Portfolio Strategy
In a recent piece for Advisor Perspectives, Keith C. Goddard, CFA, presents some intriguing data on how investors might use the 10-year “Shiller” P/E ratio to adjust their exposure to…
The Price/Peak Earnings Ratio: A Different Take on Valuation
With stocks up some 60% off their lows, one of the big questions among investors has involved the market’s current value. Are stocks now overvalued? Or are they still cheap?…
Don't Be a Bottom-Hunter
The big question in the market these days seems to be, “Have we hit a bottom?” After enduring a bear market that has lasted nearly 18 months and cut the…
Study: Stock Prospects "Rosy" for Long Term
Examining historical trends in the 10-year price/earnings ratio, bond yield spreads, and equity risk level premiums, Professors Dale L. Domian and WIlliam Reichenstein make the case that now is a…
Shiller P/E
Fortune’s Shawn Tully recently looked at the Shiller P/E model (developed by Yale University professor Robert Shiller), which calculates the P/E ratio of the market using ten years worth of…