Indeed, rumor has it that even perma-bear Jeremy Grantham is starting to take a different, if not totally positive, view on equities.
Jeremy Siegel: Shiller P/E Ratio's Fatal Flaw, The Bullish Case
January 27, 2016
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Mr. Siegel, I have to dispute what you said in your article about the Schiller report back in May of 2009. My Schiller P/E chart clearly shows the chart at 16.107 on the 10 year CAPE report for May of 09. With the median price at 16.119 I would still consider that to be a very safe buying signal to me and not a huge warning as you claim. Note the S&P 500 PE Ratio (a different chart altogether) however did show a huge jump (of over 65 points) in 2009. Today with the Schiller CAPE P/E report now at double of that time period and standing at well over 29.5 I would suggest it may now be a very good a time to consider that Schiller report as showing a potential bubble in the works.
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Very good article. I have often thought Shiller's P/E calculation over 10 years produced misleading results. Thanks for the article. One correction: When you mentioned GAAP accounting standards, did you mean FASB instead of Standard and Poor's? The FASB defines accounting standards in the US.