Stocks Are 43% Too Expensive - Shiller Ratio Developed by a Nobel Laureate Is Screaming Sell

Lahore, Pakistan -- (SBWIRE) -- 04/17/2014 -- In an article recently published on Forbes, William Baldwin says that comparing stock earnings tell that market is overvalued by 40% to 50% and the Shiller Ratio is screaming sell. Shiller Ratio has been developed by Robert Shiller a Yale Economics Professor and a recent Nobel Laureate. Shiller Ratio is calculated by looking at the average earnings for S&P 500 Index over a full decade adjusted for inflation. Shiller Ratio divides the price of the index by the earnings number. In 2009, Shiller Ratio was buy and the stocks doubled in price since then. But now the Shiller Ratio is screaming sell according to William Baldwin.