Schiller Market Indicator Hits Extreme Levels

JH: My name Jack Hanney, Senior Partner at Patriot Gold Group, home of investor direct pricing, patriot commitment, and the lightening fast IRA application process, Consumer Affairs top rated gold dealer, nationwide, 2016. Late last week CNBC and the Wall Street Journal both reported market indicator hits extreme levels last seen before plunges in 1929, 2000 and 2008.

The cyclically adjusted per share earnings evaluations measure, created by Yale economist and Nobel Laureate Robert Schiller, now stands at over 27. That has only been exceeded in 1929, the dot.com bubble in 2000 and the housing and stock bubble of 2008. Even if the market’s earnings increased by 10% under Trump’s policies, we’re still dealing with the very same picture.

Over valuation on a grand scale. The Wall Street Journal reported late on Friday, investors shouldn’t flee stocks simply because the Schiller price earnings index is above average. They shouldn’t freeze stocks even when the Schiller price earnings index is way above average, but history has said they should freeze stocks when the Schiller price earnings index is at extreme levels like now.