While some investing approaches can work for long periods of time, over the long run, “without deep expertise, it makes little sense to veer much from a simple market portfolio—one that seeks to match the overall performance of the market, and not beat it.” This according to Yale professor Robert Shiller in a recent New […]
When asked for his outlook on the market in a recent CNBC interview, Nobel Laureate Robert Shiller says investors should keep some stocks in their portfolio because the market “could go up 50 percent from here.” The economist, who helped develop the cyclically-adjusted price-to-earnings ratio (CAPE) market valuation measure, says that although the current CAPE […]
Nobel Laureate Robert Shiller writes in a recent New York Times article that “today’s CAPE is sending a troubling message,” noting that the market valuation ratio he developed (which now stands at nearly 30) was higher only in 1929 and around 2000 (when it hit 33 and 44, respectively). In both instances, Shiller writes, “market […]
In a February interview with Bloomberg, Yale University professor Robert Shiller says, “I think the Trump effect is really important.” While Shiller, winner of the Nobel Prize in Economics, says he can’t speak authoritatively on what’s ahead because that would be “guessing human psychology,” he says that the current Shiller P/E ratio (also referred to […]
An interview with Robert J. Shiller, the recipient of the 2013 Nobel Prize in economics, was recently published in Pacific Standard magazine. The discussion centered on the advent of behavioral economics—the introduction of other social sciences into the field of economics. “It’s a revolution in economics that has taken place over the past 20 years […]
In the 1990’s, economists Robert Shiller and John Campbell created a valuation metric called the “cyclically adjusted price-earnings” ratio, or CAPE. A Wall Street Journal article from earlier this month examines whether this metric might be sending a false signal that the market is overheated. The CAPE ratio values shares based on 10 years rather […]
Yale’s Robert Shiller and Penn finance professor Jeremy Siegel have long dueled over whether stocks are cheap or expensive, and Daniel Fisher, of Forbes, reviews the arguments in his recent post. Shiller devised CAPE by measuring the inflation-adjusted earnings per share for the S&P over the trailing 10 years, instead of just the most recent […]
Financial Advisor reports on Wharton School of Finance Professor Jeremey Siegel’s comments at the annual Inside ETFs conference, where he critiqued the widely used Shiller P/E Ratio. Siegel did not necessarily attack the original logic of the Shiller P/E (which won its creator, Robert Shiller, a Nobel Prize). Instead, he noted that changes to the definition […]
Prof. Robert Shiller is voicing concerns over multiple factors right now, including the high CAPE ratio (the P/E of the market using 10 years’ worth of earnings) and the increased volatility in stocks. The large downward moves recently in equities have led many investors to pay much closer attention to the market’s daily movements, especially […]
Today’s markets are dominated by computer-based trading and complicated algorithms that can profit from very small inefficiencies in the market over split second periods of time. Many argue that these computer systems have made outperforming the market considerably more difficult. Yale professor Robert Shiller looks at this argument in his latest article for Capital Finance […]
Nobel Prize-winning economist Robert Shiller says US stocks are among the most overpriced in the world. But he’s not ditching American equities altogether.
Nobel Prize-winning economist Robert Shiller — who called both the technology bubble and the housing bubble — says the bond market is not currently fitting the traditional definition of a bubble. But he says that long-term bonds are a risky choice right now.
Nobel Prize-winning economist Robert Shiller says that, while US equities look to be on the pricier side, stocks in other parts of the world are dirt-cheap.
Nobel Prize-winning economist Robert Shiller says that, while valuations are quite high, he isn’t ditching stocks.
In a recent interview in Forbes, Nobel laureate Robert Shiller says that the stock market is not as overvalued today as it was in 2007 — but it’s getting darn close.