Valuation-Informed Indexing #488: Irrational Depression Is Every Bit As Crazy As Irrational Exuberance

I’ve posted Entry #488 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Irrational Depression Is Every Bit As Crazy As Irrational Exuberance.

Juicy Excerpt: Shiller is not an advocate of lower stock prices. He is an advocate of reasonable stock prices. When the CAPE value is once again residing somewhere well below its fair-value level, Shiller’s research will be making a case for an increased stock price, not a diminished one. And that case will be much needed at that time.