Wednesday, December 10, 2014

Investors Fear Crash Looms As Stocks Overvalued

by JASmius

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Investors, especially institutional investors, believe the stock market is overpriced, according to a survey from Nobel laureate economist Robert Shiller of Yale University.

The survey results are the worst since about 2000, he told CNBC. "Over the recent years, the decline in confidence in the valuation of the market has been striking."

The S&P 500 index carried a trailing price-earnings ratio of 19.54 Friday, up from 17.80 a year ago, according to Birinyi Associates.

Shiller noted that his cyclically adjusted price-earnings ratio is now 27, which is about the same as in 2007 before the [last] financial crisis. [emphasis added]

Except now the national (on-budget) debt is almost double what it was then, and the Dow has over 25% further to fall than it did six years ago.

Precisely as Barack Obama intends.



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