Stattman And Inker See Debt Crisis Demographic Bubble

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...