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Bad historically, yes. Bad compared to everything else in the current investment climate, not so much. CAPE of 25 corresponds to a yield of 4% before growth i
by Jeema101 11y ago
Bad historically, yes.
Bad compared to everything else in the current investment climate, not so much.
CAPE of 25 corresponds to a yield of 4% before growth in earnings is taken into account. That's still pretty good compared to the yield on treasuries and just about anything else right now.
- xyzzy4 11y agoI haven't tried to use CAPE in any simulation because I don't think it is too predictive in the near term. But it's good to keep in mind.