Random Observations for Students of Economics
This chart, courtesy of Jim Hamilton, shows the stock market relative to the average of the past ten years of earnings. The red line is the historical average. (Click on the graph to enlarge.) According to this metric, stocks are now cheap, but not exceptionally so.
I am the Robert M. Beren Professor of Economics at Harvard University. I use this blog to keep in touch with my current and former students. Teachers and students at other schools, as well as others interested in economic issues, are welcome to use this resource.
<< Home