StOTD II-4/24/14 Cyclically Adjusted Price Earnings Ratio (CAPE) @ Secular Lows Since 1900
Today’s ChOTD showed the Cyclically Adjusted Price Earnings Ratio (CAPE) Since 1900. In the first StOTD, we displayed the 5 highest (CAPE) Peaks Since 1900. At the other end of the spectrum, here are the CAPE readings at secular lows since 1900 (source: Robert Shiller):
If 2009 marked the secular low, its CAPE reading would be significantly higher than at other secular lows, particularly relative to the long-term mean. We have our doubts, which are discussed in our May Newsletter at www.jlfmi.com.
Read more about this in our May Newsletter at www.jlfmi.com.