What a Nobel Prize-winning economist thinks about the stock market.

[image] Senior Analyst [image] Marketing Brew Nobel Prize-winning economist Robert Shiller is not particularly alarmed by what some market watchers argue are troublingly high valuations in the stock market. In a wide-ranging conversation with DoubleLine Capital CIO Jeffrey Sherman at the Wealth Management EDGE conference, Shiller addressed the current state of the widely-followed cyclically adjusted price-earnings (CAPE) ratio for the S&P 500. "It has come down into the low 30s," he said. "It kind of puts us where we were in other times in history that were relatively extreme." "But you know, the stock market has performed very well over the last 100 years," he added. "I like to look at long-term time horizons. And so when it's highly-priced, it doesn't necessarily make it a horrible investment." For many in the investing community, CAPE is a north star when thinking about expected returns in the stock market. The market is considered expensive when it's above its long-term average of 17. While a high CAPE ratio may trigger bubble alarms for some folks who think it's a good time to avoid stocks, Shiller has cautioned that it's not a very reliable market-timing tool. Instead, he'd tell you that an elevated CAPE ratio at best signals low returns on average in the years to come. Just because valuation ratios are high or low doesn't necessarily mean it's a good or bad time to buy.Indeed, CAPE has spent most of the past 20 years above its long-term average, and stock prices are much higher today than they were 20 years ago. There's a good argument to be made that higher interest rates should make for lower valuations. But for now, interest rates continue to be close to historic lows. And even if we are entering a regime where valuation ratios will be lower than where they have been in recent history, stock prices are not doomed to follow suit as long as earnings continue to move higher. [10 Great Stocks Under $10 [Free Report]]() Imagine knowing, ahead of time, what the best investments of the year would be… Well, investors no longer need to imagine, guess, or throw darts. See, we've uncovered what looks to be a [list of THE 10 best opportunities for 2022.](=) Even better, ALL of them are extremely cheap. They're all $10 or less right now… The key words, though, are "right now." [Simply click here and claim a copy of our new, FREE report: 10 Great Stocks Under $10.](=) 316 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 316 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 316 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. Update Email Preferences Or [Unsubscribe]( Silver Ridge Media 30 N Gould St, Ste R Ste R Sheridan, Wyoming 82801 United States