Sanna Andersson was looking for new digs. The 23-square-meter (248-square-foot) studio apartment that she shared with her boyfriend in Soedermalm -- the central Stockholm district best known outside of Sweden as the backdrop for Stieg Larsson thrillers -- had grown too cramped.
The general consensus seems to be that CAPE -- the cyclically adjusted price-to-earnings ratio -- is elevated, stocks are overvalued, and a crash is imminent. This is a misreading of both valuation measures, as well as causes of crashes.
The Flat Earth Society has all but disappeared, but the efficient-market hypothesis is alive and well. This week, the Nobel Memorial Prize in Economic Sciences was awarded to its most tenacious advocate, Eugene F. Fama of the University of Chicago.
Robert Shiller, who predicted the collapse of the U.S. housing market, is warning that a bubble is emerging in Brazil at a time when a sluggish economy and persistent inflation are eroding investor confidence.