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At least the CAPE ratio is below 30... For people whose retirement funds have basically "recovered" from the peak, that's good news for rational markets since C
by tunesmith 3y ago
At least the CAPE ratio is below 30... For people whose retirement funds have basically "recovered" from the peak, that's good news for rational markets since CAPE was around 38 back then. Of course, that's just relatively speaking. CAPE is still very high; just going by that there is still room for a major crash.
- williamDafoe 3y agoFor regular P/E ratio regression to the mean would mean a P/E of 15x. Right now the regular P/E is 24x. So we could still see a 33% drop in stocks due to all the bubble blowing from the fed. https://www.multpl.com/s-p-500-pe-ratio https://www.multpl.com/s-p-500-pe-ratio