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Notes to myself, possibly of interest to others.
-- Bill Northlich

Friday, August 19, 2011

Shiller - Buy?

Yale economist Robert Shiller is of two minds. One, that the instability and uncertainty being created in the markets right now could lead to an even more serious market rout. A sobering thought! But he too sees this as an opportunity and would be doing some modest buying right now. His Cyclically Adjusted Price Earnings (CAPE) ratio, which values the market based on 10 years of trailing earnings is around 20 right now, maybe a little lower after today’s action. The average CAPE ratio historically is 15. As he puts it, “not expensive.”
---Consuelo Mack

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