3 ms·

along these lines, note how many news stories etc are currently touting the power of stock indices and index investing. given a shiller pe of ~28, i'd say most

• jcdavis 10y ago
  Solely discussing stock valuations without also considering bond yields is a little misleading. With interest rates so low on a historical basis (albeit now possibly picking up), higher stock pricing is expected and isn't necessarily "overpriced" A good recent discussion of this: http://brooklyninvestor.blogspot.com/2016/11/bonds-down-stocks-up.html http://brooklyninvestor.blogspot.com/2016/11/bonds-down-stoc...
  • Jeema101 10y ago
    I'm not sure where that guy is getting his data, but I think the average stock market P/E when 10 year treasury rates are in the 4-6% range is more like 19. But maybe he's looking at 'forward P/E' or something. http://qvmgroup.com/invest/2013/06/22/sp-500-pes-versus-10-yr-treasury-rates-from-1957/ http://qvmgroup.com/invest/2013/06/22/sp-500-pes-versus-10-y...
• DoodleBuggy 10y ago
  Agreed, but bullish sentiment remains strong and most people are oblivious to valuation metrics. As long as people don't panic sell in the next crash, they should be able to ride it out and break even in a decade or two. Unless we end up like Japan, that is.