Monday, January 25, 2016

Robert Shiller in the NY Times

His Shiller P/E is bullshit, but Shiller is actually a great prof from what I've found.

NY Times - Shiller on market narratives. He writes about the four pop narratives that are driving stock market commentary this year. I especially like his comment on China:
The prevalence of such stories encourages a gross exaggeration of the importance of the Chinese economy for our markets. Consider that United States exports in goods to China have recently accounted for only six-tenths of 1 percent of our gross domestic product. (United States imports in goods from China, though about four times bigger, are still relatively small as an overall proportion.) But once story-based thinking gets started, there is comparatively little public interest in such numbers.

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