Posted on 07/10/2009 12:33:13 PM PDT by Kartographer
That neutral valuation suggests the stock market is likely to resort to its long-term average of 7% annual gains, Shiller says. That sounds great, but the famed professor isn't forecasting that outcome due to one major caveat: The economy is in a "precarious state" and, should it stumble anew, the stock market "could go down a lot," he says.
Shiller is clearly dubious of the "green shoots" mentality and believes it will take a very long time for the economy to return to normal growth after the bursting of the housing and credit bubbles.
(Excerpt) Read more at finance.yahoo.com ...
“Precarious State”: Stocks Fairly Valued But “Could Go Down a Lot,” Shiller Says”
Fairly valued? What a load...
If stocks go down a lot, then they are still fairly valued because that is what folks are willing to pay.
Well said.
Insiders have been selling like there is no tomorrow... weak-a** volume... the best performing stocks are... financials... and the charts of the S&P shows bearish patterns...
Anybody with a brain KNOWS (including all Freepers of course!) that Obama and his minions only stimulated the mass media and loony leftist...
I'm sure I left somethings out but this is going to end badly...
Isn’t it fairly basic that stock values are related to income and profits? With the cost of money(investment capital)going up due to the demands of paying for the deficits that are real and maybe(probably,since these guys haven’t gotten one estimate right yet,)higher than they project plus the inflation due to the enormus increase in the money supply naturally increasing rates plus increased “taxation” because of energy prices what makes anyone so positive about the US stock market?
Income statements are an accounting myth...
"Thanks, Professor!"
ok let’s give you the point that income statements are a myth, but revenue has to be generated somehow in order to have profits, would you concede that? Also, what about the other factors I mentioned. Won’t they have an impact on profitability?
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