# In an op-ed, Prof. Michael Spence outlines factors influencing stock valuations

1 Faculty News March 26, 2015 ![Project Syndicate logo](/sites/default/files/styles/246w/public/assets/images/con_030500.jpg?itok=ONV7lJ6H)>

Excerpt from [Project Syndicate](http://www.project-syndicate.org/commentary/stock-market-equities-overvalued-by-michael-spence-2015-03) -- "In my view, it is difficult to make a strong case for a significant sustained increase in earnings growth in this environment, meaning that growth alone would not justify current equity valuations. But the lower-discount-rate argument is more persuasive, and is consistent with underlying economic conditions and central banks’ mandates."

[Read more](http://www.project-syndicate.org/commentary/stock-market-equities-overvalued-by-michael-spence-2015-03)

Additional coverage appeared on [China Daily](http://usa.chinadaily.com.cn/opinion/2015-04/01/content_19966483.htm) and [MarketWatch](http://www.marketwatch.com/story/is-the-stock-market-overvalued-2015-03-27).