How Long Can This Market Stay Overvalued?

Wochit
How Long Can This Market Stay Overvalued? The Dow Jones Industrial Average is at another record high. As stock prices soar higher, their price/earnings ratios increase, making the stocks more "expensive." The obvious drawback to buying stocks in an expensive market is that there is a higher probability of larger losses in the event of a pullback, and long-term returns can be muted. Many commentators are currently focusing more attention on Yale Professor Robert Shiller's "Cyclically-Adjusted Price/Earnings Ratio" or CAPE, rather than the trailing twelve-month P/E ratio, which is currently 19.6.
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