Doug, I haven't read Schiller's book. Was only going by reviews/discussion in NYT, FT and elsewhere. Just to argue the other side (where's jordan when you need him?): I don't think the American stock market is overvalued (though wow there's a lot of room for relative movements of NASDAQ, Dow Jones, etc). There is a shortage in supply of stocks due to buy backs (though NASDAQ will be flooded by insiders cashing in--is that what happened today?), gains tend to be wanted in the form of capital appreciation instead of dividends for tax purposes, and strengthened American relative position means that US companies are best positioned to fall softest as global average profit rate falls. That means investors will pay premium for the shrinking supply of US equities that are most likely to fall least in terms of the rate of the return they can offer. And low tax rates on capital gains only further whets the rentiers' appetites. Yours, Rakesh