ANNANDALE, Va. (MarketWatch) -- They're doing it again.
By "it," I mean that some advisers are playing fast and loose with the historical data to make it appear as though the stock market's price-earnings ratio isn't as above-average as it really is.
That in essence is the argument made by two hedge fund managers, Clifford Asness of AQR Capital Management, and Anne Casscells of Aetos Capital. In a working paper they wrote in 2004, they argued that many advisers are calculating the market's current P/E ratio one way and then comparing it to an historical average calculated in another way.
I wrote about their argument in January, and reported that, according to an honest apples-to-apples comparison, the market's P/E ratio then was between 46% and 50% higher than the historical average......