Dennis Stattman of BlackRock Inc (NYSE:BLK) and Ben Inker of GMO have a realistic message regarding S&P 500 earnings and the economic outlook. Stattman says that looking at Shiller PE as a measure, for instance, the S&P 500 is currently trading near 25 times earnings where historically it trades at 16 times earnings. This is an overvalued market that could decline. Furthermore, particularly given many countries, both developed and under-developed, have unsustainable social contract, offering too much in terms of benefits, this could lead to lower pension returns, Stattman said during a panel at the Morningstar Conference in Chicago today. “We could see interest rates…
Stattman And Inker See Debt Crisis Demographic Bubble
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.