Siegel on Stock Market Valuation

A couple months ago UPenn economist Jeremy Siegel penned a Wall Street Journal op-ed on stock market valuation and problems in the standardly computed price-earnings ratio. When I first read it, I did not find the arguments were very persuasive. Now, in a new op-ed at Yahoo, Jeremy responds to his critics. This time he comes closer to convincing me that he is on to something. The argument from Bob Shiller, cited by Jeremy in the second article, about stock shares as options makes sense. If you are interested in the issue of stock valuation, click through to the two op-eds and read them in order.