Is technology making us too bullish on stocks?
from CFA Institute's Enterprising Investor
From Sept. 6:
It’s getting harder and harder to imagine how a momentum-driven bull market can last much longer if almost everyone thinks the markets are overvalued. U.S. equities have now swelled to nearly 60 percent of the MSCI World Index, around twice their representation 25 years ago. Research Affiliates calculates a near record high Shiller P/E of 47-times cyclically adjusted earnings for U.S. small-cap stocks and 27 times for U.S. large caps — valuations that imply future expected shareholder returns of around zero.
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