Subjective Invective v.7

After a wild week for stocks, what to do?

What to do, indeed.

The article gives two pieces of sage advice from Robert Shiller. First...

Though he believes the stock market is still overvalued by historical averages, he says it is closer to fairly valued than before. He suggests investors move their money "modestly" into stocks.

I get it. If stocks are overvalued, invest modestly. As the saying goes, buy overvalued and sell high. Then, at the end, we get another piece of advice from Shiller...

"I'd be wary of putting too much in the market," says Shiller. "There's a good chance they'll fall. It's hard to predict the market."

Invest modestly, but be wary of putting too much in the market because there is a good chance it will fall. Now, I'm really confused. To be fair to Professor Shiller, he was probably misquoted and taken out of context. At least CNBC is consistent. It's always time to buy stocks!

I found this chart from an article by Charles Hughes Smith comparing the DOW from the 1907 panic (the one that spawned the Federal Reserve) to the 2008 crash. Yowza. Quoting Shiller: "there is a good chance it will fall."

Disclosure: I am not a certified financial anything. This is not investment advice. No stock positions.