The Coming Bear Market? by Robert J. Shiller – Project Syndicate

KW: The latest warning from the financial establishment comes from Nobel Prize winner, Robert Shiller of Yale University. Shiller is known as the co-inventor of the Case-Shiller Index of housing prices which he used to predict the housing market collapse before it happened in 2007. But, he is also the inventor of the CAPE ratio (cyclically adjusted price-to-earnings ratio), which has an excellent track record of predicting bear markets. In this article Shiller uses his CAPE ratio and other data to warn that, “The US stock market today looks a lot like it did at the peak before all 13 previous price collapses.” Robert Shiller is not Chicken Little. He’s a solid, mainstream economist. His views deserve serious consideration by all stock market investors.

Source: The Coming Bear Market? by Robert J. Shiller – Project Syndicate

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