Robert Shiller announced his CAPE ratio on twitter last week. I mentioned it in a post earlier this week. I won’t post his quote again, so jump over to check it out. In it, he compares today’s CAPE level with the previous high of 2007.
It doesn’t take much to over think it, put two and two together, and see another crash as a foregone conclusion. The reference of ’07 makes that connection. Though, to be fair, Shiller is simply stating a fact, not making a prediction. But my first thought was – what role did the high CAPE in ’07 play in the resulting crisis? Continue Reading…
The past few years has seen a growing discussion around how to best value the market. More recently, the argument turned toward just how overvalued is the market and what does it mean? I thought I’d try to answer those two questions.
The quotes of many great investors are often misused for a number of reasons. Peter Lynch is one of them. His most misused, and arguable misunderstood, quote is – Invest in what you know. Those five words are taken out of context all the time.