Why is the US stock market so high –and is it justified? | Robert Shiller
by Robert Shiller from on (#3E1H4)
It's not the Trump effect or tax cuts. Americans seem to have a strong desire to own capital
The level of stock markets differs widely across countries. And right now, the United States is leading the world. What everyone wants to know is why - and whether its stock market's current level is justified.
We can get a simple intuitive measure of the differences between countries by looking at price-earnings ratios. I have long advocated the cyclically adjusted price-earnings (CAPE) ratio that John Campbell (now at Harvard University) and I developed 30 years ago.
Related: Dow Jones tops 26,000 for first time as stock market boom continues
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