CNBCMorgan Stanley’s Adam Parker.Morgan Stanley chief US equity strategist Adam Parker does not want to acknowledge the permabears right now, even with stocks at all-time highs.Nor does Parker think these folks deserve credit when we finally get a stock-market correction.”We all know lots of people who have called 17 of the last zero corrections,” Parker wrote in a note to […]
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So are stock prices too high or aren’t they?One of the most closely watched measures of stock market value is the cyclically adjusted price-earnings (CAPE) ratio. Popularized by Nobel-prize winning economist Robert Shiller, CAPE is calculated by taking the S&P 500 and dividing it by the average of ten years’ worth of earnings. If the ratio is above the […]
shuttyConfounded by this wacky stock market? You’re not alone.Robert Shiller, the 69-year-old acclaimed economist who helped create the Case-Shiller home-price index, is having a tough time deciphering this U.S. stock market too.The 2013 Nobel laureate and Yale University economics professor told MarketWatch that this volatile, post-financial-crisis market, in which interest rates have been at or near zero since 2008, is […]
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Stock prices relative to earnings are very expensive. This is reflected by the high price-earnings (PE) ratio.One closely-followed version of the PE ratio is Robert Shiller’s cyclically-adjusted price-earnings (CAPE) ratio, which is calculated by taking the S&P 500 and dividing it by the average of ten years worth of earnings. If the ratio is above the long-term average of […]
ArchivesThe unsettling market plunges of two weeks ago have stopped (at least for now), and stock prices have recovered a bit. So now everyone’s getting cautiously bullish again.
Everyone except me.I still think stocks are poised to have a decade or more of lousy returns.Why?Three simple reasons:Stocks are very expensive
Corporate profit margins are at record highs
The Fed is now tightening
I’ll go […]
Robert Shiller: ‘The world is still very vulnerable to a bubble.’ Photograph: Brendan McDermid/ReutersOne of the winners of this year’s Nobel prize in economics has warned that sharp rises in equity and property prices could lead to a financial bubble.Robert Shiller, who won the award with Eugene Fama and Lars Peter Hansen for research into market prices and asset bubbles, […]
