Bubble Juice? Shiller’s CAPE Ratio Now Above 1929 Black Tuesday Level With Historically Low Volatility

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

Recently-minted Nobel Laureate Richard Thaler from University of Chicago confessed his puzzlement (and nervousness) at the historically low stock market volatility. 


Adding to Thaler’s puzzlement is that another Nobel Laureate, Robert Shiller, has a cycically-adjust price-earnings (CAPE) ratio that just exceed the level found on Black Tuesday, October 29 1929, that helped ignite The Great Depression. However, the CAPE Ratio is still below its peak found during the infamous Dot-com bubble (and bust)


Here is a closer view of the Dot-com bubble and burst.


Professor Thaler, I wonder if The Federal Reserve endless overstimulation of assets has anything to do with it?


Here is a photo of Federal Reserve Chair Janet “Bubbles” Yellen sipping Pro Bubble Juice.




Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.