Robert Shiller Is Launching Indices Based On His Legendary Valuation Ratio

robert shiller

Photo: Yahoo Finance

Yale economist Robert Shiller will produce a series of U.S. equity indices, called the Shiller Barclays CAPE Index Family, with Barclays. according to the Financial Times. The indices will be based on the cyclically adjusted price/earnings ratio (CAPE) metric that Shiller famously used to predict the tech bubble. From the FT:

Barclays said the three indices will be aimed at long-term, institutional investors and linked to a range of “over-the-counter” instruments including swaps, structured notes, certificate of deposits and so-called Delta One products.

“Predicting the market in the short run is an art and not a science. We are doing something systematic here intended for long-term investors,” Mr Shiller said.

He added: “Well informed people have always had an interest in value investing. We are putting forward a better analysis on the market in a way that respects the complexities of history, psychology and human behaviour.”

Read the entire piece at The Financial Times >

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