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EconoFact Chats

Eric Zitzewitz on Gauging the Fair Value of the Stock Market

Jun 12, 2022
19:24
The S&P 500 index more than doubled between March 2020 and the end of 2021. It has recorded steady losses since then, falling by about 15% as of June 2022 . What determines stock prices? Were stock prices too high before 2022? Are they too low now? More generally, how do we gauge whether stock prices are too low or too high? Eric Zitzewitz of Dartmouth College joins EconoFact Chats to discuss these questions. Eric is Professor of Economics at Dartmouth. His expertise is in industrial organization and agency issues in the financial and informational industries.

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