Tuesday, August 24, 2010

FT: Are Stock Prices Too High?

Are stock prices still too high?

James Hamilton, using data collected by Robert Schiller, plots the last 130 years of the US S&P 500 and its predecessors:

The green line is the price of the index over the average of inflation-adjusted earnings during the previous decade.

Hamilton fills in the details:

click above to see the full article.

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