Leonhardt discusses the stock market, focusing on the ratio of stock prices relative to ten-year average earnings. This is good commonsense. It's too bad more of this didn't find its way into print a decade ago (or two years ago about the housing market).
The case for the market is actually somewhat brighter than Leonhardt suggests. If the market stays at the same PE, and the profit share of GDP does not change, then stock prices will rise at the rate of nominal growth of GDP. While GDP may did in the next year, the recession will not last forever. Nominal GDP growth is likely to average close to 5 percent over any reasonable period (roughly half inflation and half real growth). If this 5 percent growth is added to a 3 percent current dividend yield, then stocks look far better than any available alternative investment.
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