Robert Shiller uses a 10 year cyclically adjusted PE ratio to value the market. According to his analysis stocks are relatively cheap, but could overshoot to the downside as they have in prior bear markets.
But stocks aren’t the only expensive asset. He goes on to explain why housing is still too expensive:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.