I am sorry for the dearth of posting. Between tax season and attending the CFA Institute’s Annual Conference in Edinburgh, I had little time. A review of Greenblatt’s book can be found here: http://post.nyssa.org/nyssa-news/2011/05/book-review-the-big-secret-for-the-small-investor.html
Also on the Post, an interesting analysis by Joseph Calandro, Jr.: http://post.nyssa.org/nyssa-news/2011/05/suggestions-for-modern-security-analysts.html
I plan to write an analysis of the CAPE soon. Normally I do not pay much attention to top-down analyses, but the CAPE is fundamentally sound and has reliably indicated long-term returns for the stock market. Tobin’s Q ratio has also been reliable. These metrics give us the market P/E ratio, or current market price relative to earnings through economic cycles (CAPE), and the market P/B ratio (Tobin). Price means nothing unless it is compared with some indication of value.