- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: CAPE Ratios: How much weight should we assign to them in choosing markets?
Posted on 8/6/13 at 1:31 pm to Doc Fenton
Posted on 8/6/13 at 1:31 pm to Doc Fenton
quote:Right.
Bob Shiller's 10-year methodology
Faber's schtick is application of Shiller's PE ratio calcs (first applied to the S&P) to various international indices. Fortune had a nice write up on it recently (can't find it online though).
Was surprised at some of the market-to-market CAPE disparities. Will probably use new purchases to rebalance a bit toward non-emerging foreign markets.
quote:
EDIT2: It looks like an excellent time to go enable some Zionists...
Posted on 8/7/13 at 5:03 am to NC_Tigah
quote:
Will probably use new purchases to rebalance a bit toward non-emerging foreign markets.
Okay, but just keep in mind that CAPE ratios are supposed to be lower here, since non-emerging foreign markets are notoriously sluggish with respect to long-term growth, market demographics, public indebtedness, etc.
Anyway, I just came across this article from RealClearMarkets.com earlier this morning on Grantham's methodology: " This fund tracks 36 bubbles—and 33 have completely popped."
quote:
When writing an article on the slowing pace of global growth last week—for which Grantham’s ideas provide significant fodder—my colleagues and I were spellbound by one statistic: of the 36 major bubbles GMO says it tracks, 33 have completely popped, or returned to their prior trends.
GMO won’t say what most of these are, and according to the firm’s quarterly letters, it also tracks a lot more less-major bubbles: 330 by its February 2013 count. For GMO, a “bubble” is simply when the price of an asset in relation to its real value (usually just the “price-to-earnings ratio” in investor-speak) has exceeded its average by a certain amount, and a “major bubble,” a bigger amount (two standard deviations, for statistics aficionados.)
quote:
GMO declined to provide more details about its methodology or current bubbles it’s tracking because those data are proprietary.
Popular
Back to top
Follow TigerDroppings for LSU Football News