2018-09-17 12:40:00 Mon ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Nobel Laureate Robert Shiller's long-term stock market indicator points to a recent peak. His cyclically-adjusted P/E ratio (or CAPE) accounts for long-term corporate profitability and market valuation. CAPE has correctly helped anticipate the Black Monday 1987 stock market crash, the dotcom bubble collapse in the dawn of the new millennium, and the global financial crisis from 2008 to 2009.
As of September 2018, this metric gauges the U.S. stock market value at 33 times the average corporate income over the past decade. CAPE serves as a useful key economic indicator of U.S. stock market overvaluation at this stage of the business cycle. In fact, the current U.S. stock market capitalization well exceeds American real GDP economic output. It is often difficult to beat the market, whereas, it can be quite easy and imperative to save on capital income taxes and transaction costs.
Wharton finance professor Jeremy Siegel, however, disagrees with this simplistic CAPE analysis of U.S. stock market valuation. Even though U.S. stocks appear to be expensive, they remain good bargains in comparison with bonds in light of the small default risk premium. Relative valuation of stocks-versus-bonds continues to be favorable during the current Trump stock market rally in modern U.S. economic history.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-04-27 16:41:00 Saturday ET

Tony Robbins suggests that one has to be able to make money during sleep hours in order to reach financial freedom. Most of our jobs and life experiences tr
2018-09-01 07:34:00 Saturday ET

As the French economist who studies global economic inequality in his recent book *Capital in the New Century*, Thomas Piketty co-authors with John Bates Cl
2017-01-27 17:19:00 Friday ET

Tony Robbins explains in his latest book on personal finance that *patience* is the top secret to successful stock investment. The stock market embeds an
2019-06-30 12:37:00 Sunday ET

AYA Analytica finbuzz podcast channel on YouTube June 2019 In this podcast, we discuss several topical issues as of June 2019: (1) Federal Reserve h
2019-06-13 10:26:00 Thursday ET

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war. In recent
2017-10-03 18:39:00 Tuesday ET

President Trump has nominated Jerome Powell to run the Federal Reserve once Fed Chair Janet Yellen's current term expires in February 2018. Trump's