Nobel prize winning Yale professor pontificates...
SPX 2367, CAPE 28.66
Interviewer: "Should the portion of someone's portfolio that was equities be reduced?"
Shiller: "Yes, reducing your holding of stocks, even for a long term, especially for a long term investor.... we know that when [the CAPE ration] is this high, the [stock market] doesn't do that great."
SPX 2404, CAPE 29.39
"Think back to the 1990s, it went up from 30 to 45, that's a 50% further increase. I'm just saying, that could happen again. ... We have some kind of inspiration, maybe, from the White House, a businessman president. If factors go right and there are tax cuts for corporations, it's not that hard to understand" that [the CAPE ratio could go up 50%] (implying the market would also go up 50%).
The Pivotal Perspective - this is an utter bullish capitulation from a Yale economist, professor and Nobel prize winner for studies in stock market valuations. We are closer to a top than most people think.
File this under: Apple target 1000 (at 700), 5 months and only 12% from major top and -44% decline, and TNX target of 1.0% at 1.38% on the day of the low!