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.
2024-10-14 11:33:00 Monday ET

Stock Synopsis: Video games continue to take both screen time and monetization from many other forms of entertainment. We are broadly positive about the
2020-04-24 11:33:00 Friday ET

Disruptive innovations tend to contribute to business success in new blue-ocean markets after iterative continuous improvements. Clayton Christensen and
2026-07-01 11:29:00 Wednesday ET

In recent years, higher American economic growth has been impressive both by historical standards and in comparison to the rest of the world. American excep
2025-10-03 10:31:00 Friday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund
2025-06-28 10:39:00 Saturday ET

Former New York Times science author and Harvard psychologist Daniel Goleman explains why great mental focus serves as a vital mainstream driver of personal
2020-04-03 09:28:00 Friday ET

The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley. Michael Malone (2014)