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

This is a syndicated repost published with the permission of Snake Hole Lounge. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

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

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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)

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

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

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

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