Comments on: How to Interpret Asset Market Prices? http://www.arnoldkling.com/blog/how-to-interpret-asset-market-prices/ taking the most charitable view of those who disagree Mon, 21 Dec 2020 00:12:22 +0000 hourly 1 https://wordpress.org/?v=4.0.32 By: Ajay http://www.arnoldkling.com/blog/how-to-interpret-asset-market-prices/#comment-90437 Wed, 17 Jul 2013 22:51:33 +0000 http://www.arnoldkling.com/blog/?p=1519#comment-90437 Ah, I see why, you got your quote from the linked blog at The Economist, which snips the quote in this misleading way, rather than from the original source that you linked to.

]]> By: Ajay http://www.arnoldkling.com/blog/how-to-interpret-asset-market-prices/#comment-90435 Wed, 17 Jul 2013 22:44:59 +0000 http://www.arnoldkling.com/blog/?p=1519#comment-90435 You should have left a bit more in that quote, specifically, the fundamentals he’s talking about are not market fundamentals but “the policy fundamentals that the FOMC controls–the path of future short-term policy rates and the total stock of long-term securities that we ultimately plan to accumulate via our asset purchases.” I thought, from reading your quote, that he was making a broader point about market fundamentals vs sentiment and other market factors, but he was making a minor point that the Fed doesn’t control that much.

]]> By: Jack PQ http://www.arnoldkling.com/blog/how-to-interpret-asset-market-prices/#comment-90355 Wed, 17 Jul 2013 17:34:25 +0000 http://www.arnoldkling.com/blog/?p=1519#comment-90355 However, John Cochrane, an equally well regarded financial economist, appears to argue that it is possible to glean some information from market prices and dividends. Sounds odd coming from a Chicago guy! But worth reading:

http://faculty.chicagobooth.edu/john.cochrane/research/papers/Bubble_Bloomberg_Cochrane.pdf

also, older:

http://online.wsj.com/article/SB122645226692719401.html

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