Finance at a Time of Stress: Evaluating Stock Prices
Harvard University and The Fletcher School, Tufts University
How can we gauge whether the stock market is overvalued or undervalued? John Campbell discusses the Cyclically Adjusted Price/Earnings (CAPE) Ratio, developed by him and Robert Schiller, and presents its value over the past 150 years, noting its upward shift over the past two decades.
This is an excerpt from EconoFact's Roundtable 'Finance at a Time of Stress,' held on 27th April 2023, featuring John Campbell of Harvard University, Eric Rosengren, the immediate past President of the Federal Reserve Bank of Boston, and Christopher Smart, Head of the Barings Investment Institute. See more from the event below: