Hmm...a lot companies going bankrupt while the economy "booms" - feels funny.
-
-
-
-
Replying to @Molson_Hart
There are several things pointing to an upcoming recession mid term though. There's Shiller's CAPE, and this too: https://www.frbsf.org/economic-research/publications/economic-letter/2018/march/economic-forecasts-with-yield-curve/ …
1 reply 0 retweets 1 like -
Replying to @gsvigruha
Does shillers cape predict recessions? I thought it was only indicative of long-term market returns?
1 reply 0 retweets 0 likes -
Replying to @Molson_Hart
Ehm, good question. I guess if a lot of things are extremely overvalued at the same time that sort of predicts a recession?
1 reply 0 retweets 0 likes -
Replying to @gsvigruha
The correct answer seems to be: kinda. http://www.multpl.com/shiller-pe/
1 reply 0 retweets 0 likes -
Replying to @gsvigruha
Also i've been conflating the terms recession and market crash.
1 reply 0 retweets 0 likes -
Replying to @gsvigruha
Off the top of my head (you might like Irrational Exuberance), I want to say Shillers PE would not differentiate between a market declining 50% then going up 200% and staying flat for 10 years.
1 reply 0 retweets 0 likes -
Replying to @Molson_Hart
Thanks i'll check it out! I mean if the economy follows chaotic dynamics (and i'm almost sure it does) any prediction can be only short term, provisional and to be treated with skepticism.
1 reply 0 retweets 1 like
Agreed. Though, and you may agree, I might say that not even short-term predictions for the economy are much use.
-
-
Replying to @Molson_Hart
I don't think they don't have any use personally for most people. The most i would say is that an idea of the probability space can be useful for policy making.
0 replies 0 retweets 1 likeThanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.