Careful not send the investing into a panic, Robert Shiller appeared on CNBC this morning to explain just how insane the valuation levels of the market are currently…
And MarketWatch.com’s Brett Arends lays out the details…
I hate to rain on this parade. But the latest lurch upwards in stock prices has just taken market valuations up into the skybox levels, according to the market timing measure with the longest pedigree on Wall Street. It’s just gone from flashing amber to flashing red – meaning, if it’s right, that there is now a significant and rising risk of a crash, and a bigger risk of simply very poor returns.
This has little to do with President-elect Donald Trump, by the way – and much more to do with President Ulysses S. Grant and all his successors.
Wall Street’s jump this week has taken the S&P 500 to an eye-watering 27.9 times the corporate earnings of the past 10 years. That’s according to data compiled by Yale finance professor Robert Shiller and some simple math.
This post was published at Zero Hedge on Dec 8, 2016.
Follow on Twitter
Recent Comments