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Who's Afraid of Shiller's CAPE?

September 16, 2015

The other day, I had a vigorous Twitter debate with John Authers, a journalist who writes for arguably the best daily newspapers in the world, The Financial Times. Authers wrote a story entitled Fears grow over US stock market bubble that quoted Nobel-prize winning Robert Shiller regarding his famous Cyclically-Adjusted Price-to-Earnings ratio (CAPE). In a nutshell, Authers’s argument …

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