From Optimism to Overvaluation
Lecture no. 38 from the course: Crashes and Crises: Lessons from a History of Financial Disasters
Taught by Professor Connel Fullenkamp | 09 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Examine two pieces of evidence that argue stocks were quite overvalued in 1928 and 1929: the cyclically adjusted price-to-earnings ratio (CAPE), and reports that only a small subset of listed stocks experienced price gains.