If you've been following Shiller's historical stock market data, you can see that the S&P cyclically adjusted price/earnings ratio (average inflation-adjusted earnings over the past 10 years) is currently around the upper end of the 130 year range (since 1881). Multpl.com has charts available from Shiller's data sets. So, will stock valuations overshoot to the downside like housing? He was also asked about gold. Watch the video after the jump.
|Household Net Worth Q2 2011 (Federal Reserve)|
More news from today:
SHILLER: House Prices Probably Won’t Hit Bottom For Years (Henry Blodget interviews Bob Shiller at Daily Ticker)