Valuation-Informed Indexing #702: We Know Little About How Irrational Exuberance Works

I have posted Entry #702 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called We Know Little About How Irrational Exuberance Works.

Juicy Excerpt: Irrational exuberance is a strange phenomenon. That word “irrational” is disturbing. Shiller was writing about stock investing in his book. The suggestion that you get just from reading the title of the book, let alone its words and pages and chapters, is that investors are committing self-harm by giving in to the power of this irrational exuberance phenomenon.