“The predictor I’m talking about is the Shiller price-to-earnings ratio (P/E), and it’s calculated by dividing the price of the S&P 500 index by the 10-year average of inflation-adjusted earnings. History shows that expensive markets tend to result in low, and sometimes even negative, long-term returns. And cheap markets tend to result in high, long-term returns. Sounds like common sense. But most investors ignore it. And right now the Shiller P/E ratio is telling us that the U.S. stock market is pretty expensive, which means U.S. stocks should produce a relatively low return over the next 10 years.”
http://thesovereigninvestor.com/2013/11/04/heres-sp-500-will-10-years/
Related posts:
Berkeley’s new soda tax panel begins allocating seized funds
Ron Paul: You’re Not Free If You Can’t Secede From An Oppressive Government
Restore the Fourth: Nationwide anti-NSA spying protests hit US
Polish Gold to be Repatriated?
Chicago Commissioner Pleads With UN To Deploy Foreign Troops In US
China Takes Another Stab At The Dollar, Launches Currency Swap Line With France
Fed’s Zero Interest Rate Cost Savers A Trillion Dollars
Dad Breaks Down Over Having Called Chicago Cops Who Killed His Son
Idaho Adopts Khan’s Free Online Academy
The Trusting Soul Who Tipped Off the Boston Invaders
Ex-Treasury Secretary Geithner to Join Council on Foreign Relations
The War Powers Act and Syria
The Bank Branch: An Endangered Species?
How Silicon Valley workers are revolting against ICE overreach
How Medicaid Funds and Fuels the Opioid Epidemic