So You Thought Stocks Were Reasonably Valued
Then along comes Henry Blodgett who posts an article at Business Insider claiming stocks are about 50% overvalued, by the calculations of economist Andrew Smithers:
Smithers constructs his estimate in two ways: 1) the same cyclically adjusted PE ratio that we use, and 2) something called “Tobin’s Q,” which is a measure of replacement value. Like Yale professor Robert Shiller, Smithers charts these valuation measures for the last century, which provides some context for where we are today:
Click on chart for larger image:
There is much more sobering conjecture at the source below:
Source: Business Insider
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