NEWSMAX: Nobel Prize-winning economist Robert Shiller, co-creator of the closely watched S&P Case/Shiller Home Price Index, and DoubleLine Capital CEO Jeffrey Gundlach see no bubble in the housing market even though the index has soared 13.3 percent this year through September.
Schiller told Barron’s that the U.S. stock market isn’t in a bubble, either. His cyclically adjusted price-earnings (CAPE) ratio, which encompasses the past 10 years of earnings, now stands at 25.
Although that’s well above its long-term average of 16, “it’s not so much above average that I would disqualify stocks as an investment,” Shiller said. But, he added, “I’m starting to get more worried about the market as it keeps going up. When CAPE gets as high as 28, stocks would start to look unattractive.”… (more)
