Irrational Exuberance by Robert Shiller: Bubbles, Narratives and the CAPE Ratio

Robert Shiller published Irrational Exuberance weeks before the dot-com crash, and it remains the definitive book on why markets periodically lose touch with reality. His argument: markets move on stories about fundamentals, not the fundamentals themselves, and a feedback loop between prices, media and buyers inflates every bubble the same way. This is Shiller in plain English, with the UK-practical version: what the CAPE ratio (the Shiller P/E) actually measures, why high readings have historically meant thin decade-ahead returns, why UK shares often look cheaper than US shares on this basis, and how to hold a genuinely global portfolio instead of betting the lot on one expensive market. Read the full written review: https://freedomisntfree.co.uk/articles/understanding-market-mania-a-review-of-robert-shillers-irrational-exuberance General information, not financial advice. CAPE data from Robert Shiller's Yale data page, via multpl.com. #personalfinance #investing #irrationalexuberance #capeatio #ukfinance