US stock futures declined on Wednesday by about 0.1% after the previous day's market rally, in which all three major indexes finished higher. Dow rose by 1.06%, S&P 500 jumped by 1.65%, and the Nasdaq Composite rallied by 2.14%. The banking sector staged a comeback rally as investors shrugged off fears of a systemic risk. Investors look forward to retail sales and...
In 1998, Robert Shiller--the Yale economist and Nobel Prize winner-- formalized that idea in a paper, "Valuation Ratios and the Long-Run Stock Market Outlook" and a book, "Irrational Exuberance." The latter made Shiller something of an economic prophet. In his book, which came out shortly before the dotcom crash, he warned that stocks were overvalued.
What is...