CAPE
Robert J. Shiller has shown remarkable prescience over the years. And with talk of inverted yield curves, overvalued stock markets, and imminent recession, the present struck us as an opportune time to see what was on his mind.
As finance gurus forecast a market that's variously overvalued, undervalued, ready to plunge off the cliff, or blast off to new heights, remember to tune out the noise and stay invested for the long run, says Mark Armbruster, CFA.
The stock market often moves contrary to consensus forecasts, says Mark Armbruster, CFA. In the face of many stock market naysayers, there is a reasonable argument for further gains.
You arrive at your retirement day with a sizeable retirement fund. But then what? Some theorize that this is the point when there is the greatest risk of failure in your lifelong savings strategy. This edition of In Practice summarizes an innovative solution to this dilemma curated from new research from Cass Business School, London.
Active equity managers can outperform their benchmarks, especially if they follow some important guidelines. Alpine Capital Research (ACR) and its CIO, Nicholas Tompras, CFA, provide a case study on how to implement these factors.
Is the stock market overvalued? That depends on who you ask. Nobel laureate Robert J. Shiller says "yes," while Jeremy Siegel says "no."
Historically the CAPE ratio has worked well in predicting the future real returns of stock markets. But recently the earnings side of the CAPE ratio has come under increased scrutiny.