TIP 065 : Yale Professor, Robert Shiller's Book, Irrational Exuberance (Investing Podcast)
We Study Billionaires - The Investor’s Podcast Network
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What Happens When You Lower That Interest Rate?
The lower risk premiums imply higher prices of stocks and other earning assets. We can see that the inverse relationship exhibited by price to earnings ratios and the rate of inflation in the as but how do we know when irrational exuberance has unduly escalated aset values, as they have in japan over the past decade? So basically what he's talking about here, in 19 96, he sayin inflation, t keeps going down, and it has since the early 19 eighties,. whenever vulkar basically put an end to the insane tion rate. And as that's coming down, he's basically seen a very similar thing playing out to what was happening in japan.
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