Buttonwood: Investors are both bullish and skittish about share prices

Posted: May 5, 2017 in economy
Tags: , ,

Print section
Print Rubric: 

Investors are simultaneously bullish and skittish about valuations

Print Headline: 

Cape Fear

Print Fly Title: 


UK Only Article: 
standard article


The data economy demands a new approach to antitrust

Fly Title: 


TEN years ago this month investors were pretty confident. True, there were signs that problems in the American housing market would mean trouble for mortgage lenders. But most people agreed with Ben Bernanke, the Federal Reserve chairman, that “the impact on the broader economy…seems likely to be contained.” The IMF had just reported that “overall risks to the outlook seem less threatening than six months ago.”
That was reflected in market valuations. In May 2007 the cyclically-adjusted price-earnings ratio (CAPE), a measure that averages profits over ten years, was 27.6 for American equities (see chart). That ratio turned out to be the peak for the cycle. As the …

via Economic Crisis http://ift.tt/2p1pJ0r


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s