Market signal warns investors 🚨
Is the US stock market too expensive? A 155-year-old warning signal says it is. It’s called the CAPE ratio or the Shiller PE, after its inventor Robert Shiller. Think of it as the market's price tag, compared to how much companies actually earn. The data goes back to 1871, and over all that time, the average reading is about 17. It’s now around 42, and it's only been this high once before, right before the dot-com crash of 2000. That doesn’t mean sell everything because markets can stay expensive for years. While the Shiller PE can tell us when the market is overvalued, it can't say exactly when or if a crash will happen. #investing #stocks #money #fintok #invest
About Robert Shiller
Robert James Shiller (born March 29, 1946) is an American economist, academic, and author. As of 2022, he served as a Sterling Professor of Economics at Yale University and is a fellow at the Yale School of Management's International Center for Finance. Shiller has been a research associate of the National Bureau of Economic Research (NBER) since 1980, was vice president of the American Economic Association in 2005, its president for 2016, and president of the Eastern Economic Association for 20...
More about Robert Shiller→Added
Know someone who'd love this clip?
Share it with friends and fellow fans.
