Salient to Investors: Robert Shiller at Yale said stocks and bonds are highly priced and may be joined by real estate. Jeremy Siegel at Wharton expects the bull market to continue, possibly reaching Dow 18,000 or higher by the end of 2014. Siegel said bull markets climb the wall of
READ MORE... →Salient to Investors: Nobel Laureate Robert Shiller said: People make better decisions with financial advisers. A lack of good financial advice was one of the problems that led to the financial crisis. Many Americans went into unsupportable debt to buy homes, which a good financial adviser would not have let
READ MORE... →Salient to Investors: Robert Shiller said a housing bubble is emerging in Brazil as home prices have risen as much as twice the increase in rent prices, and housing bubbles are brewing in emerging markets including China, Taiwan, India, Russia, Colombia, Canada and Hong Kong. Shiller said Brazil prices doubling
READ MORE... →Salient to Investors: The US home ownership rate is 65% versus the record high of 69.2 percent in 2004, and back where it was two decades ago. Anthony Sanders at George Mason University said low down-payment loans coupled with exotic adjustable rate mortgages helped fuel the housing bubble, so do we want to
READ MORE... →Salient to Investors: Robert Shiller at Yale said the housing recovery is fragile and should be spurred by reducing the role of government in the mortgage-finance system. The economy needs further fiscal stimulus to create jobs, with increases in spending offset by higher taxes on the wealthy to avoid enlarging the national debt. Read the full article
READ MORE... →Salient to Investors: The cyclically adjusted price-to-earnings ratio – CAPE – correctly signaled frothy markets in 1929, 1999 and 2008. CAPE looks at 10 years of averaged profits so is considered a more conservative gauge. S&P 500 has a trailing P/E of around 15, which makes the market attractive based on historical levels, and
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