University of Pennsylvania’s Jeremy Siegel has been shooting again at
Yale professor Robert Shiller’s stock market valuation model, the
cyclically-adjusted price-earnings ratio, or CAPE,
according to William L. Watts at The Tell blog on the MarketWatch web site at http://blogs.marketwatch.com/thetell/.
CAPE showed an adjusted P/E
ratio of 23.57 recently, considerably above the long term average and an
indication that the market is overvalued. Here is the chart of CAPE from Watts’ blog:
