After Professor Jeremy J Siegel recently spoke on why the Shiller's CAPE PE is flawed due to its problematic input data, others have begun writing to support the same view. In another article (not written by Prof Siegel), it provides 3 reasons why the S&P 500 is "chronically" overvalued. The three reasons cited were (1) inconsistent earnings calculation (the same reason cited by Siegel), (2) changes in the Dividend Payout Ratios and (3) the reduced probability of the "The Big Three" happening in the future.

(My comment: If S&P 500 is indeed 'chronically' overvalued, the implication is that the US markets may not be as overvalued as what everybody thinks. Right now, all fund managers and analysts are saying the US markets is overvalued and it will come crashing down. I find this unusual because usually a bear comes when everybody thinks it will go up.)

If you are ...