Shiller vs. Siegel: Is Market Too Expensive?

Apr 19, 2011

Robert Shiller, Yale economics professor, and Jeremy Siegel, Wharton finance professor, weight in on whether a bullish market is too much of a good thing.

Shiller measures the stock market based on stock price divided by 10-year average earnings. According to him, that measurement does not suggest now is a good time to buy stock, as the P/E ratio stands about 23.

Jeremy Siegel is habitually bullish and he bases his bullishness on the P/E ratio on the current earnings, and earnings is trending up.

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