Can we ignore this market indicator since its a NEGATIVE prediction????

[S2007S]

I guess only positive market indicators stand strong when markets are in rally mode, throw in a NEGATIVE indicator or two and it's completely ignored.....guess will just ignore this one and stick with only positive ones since we are in a new bull market and not even a 1.7% dip is possible going forward for the next 8+ years



Market indicator hits extreme levels last seen before plunges in 1929, 2000 and 2008
Tae Kim | @firstadopter
6 Hours AgoCNBC.com
PLAY VIDEO

http://www.cnbc.com/2016/12/08/market-indicator-hits-levels-last-seen-before-plunges.html

 

[Visaria]

Fine, I'll pay attention in January .... right now I want a strong Santa Clause rally so I can make some dosh.

 

[Deuteronomy_24_7]

Shiller's CAPE has been bearish for at least five years.

 

[Money Trust]

How many times has this indicator hit these levels and nothing happened? It may have gotten it right 3 times but how many attempts?

 

[Mtrader]

Shiller's CAPE has been bearish for at least five years.

The fact that Shiller is a professor at the Yale University gives an indication about his knowlegde about the markets. If he would be good he would be a trader or hedgefund manager, not a professor. Some teach and some trade.

 

[pepper_john]

In the late 1990s, people ignored warnings like this as they argued " this time it is different " because of the internet, which was then called the information super highway. Now people think this time it is different because of the expected repairs of physical roads and highways.

The only question to me is "when" not "if".

 

[JackRab]

The problem that I have with PE ratios is that prices usually lead earnings.. since the stock market levels should reflect future earning power. So when people say PE is very high... that means two things are involved... price is too high for earnings or earnings are too low for the price. But , it should be are future earnings priced too high?

So, if inflation kicks in earnings will rise sharply even when interest rates are brought up to (above) normal levels. So PE normal again or maybe even low, even when stocks are way up...

As always, it's a fun battle for analysts/writers/bloggers, none of which I rate high in trading/investing because of the fact that usually bulls will always be bulls and bears will always be bears... I'd rather do my own research...

 

[murray t turtle]

I guess only positive market indicators stand strong when markets are in rally mode, throw in a NEGATIVE indicator or two and it's completely ignored.....guess will just ignore this one and stick with only positive ones since we are in a new bull market and not even a 1.7% dip is possible going forward for the next 8+ years



Market indicator hits extreme levels last seen before plunges in 1929, 2000 and 2008
Tae Kim | @firstadopter
6 Hours AgoCNBC.com
PLAY VIDEO

http://www.cnbc.com/2016/12/08/market-indicator-hits-levels-last-seen-before-plunges.html

NICE chart,S2007 trader; its not really about prediction. Stock Traders Almanac rightly notes bullish tendency of 4th quarter+ JAN. NOT a prediction; overdue for a bear market . Mr. Rich turtle Dennis said ''expect extremes'' Hope this helps...........................................................................................................