flyinkiwi10

Update on the S&P Shiller PE Ratio

Short
flyinkiwi10 Updated   
SP:SPX   S&P 500 Index
Just to update.

Will link to other posts.

PE ratio has now dropped 18% since January. Will do an EW count and post that too.
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PE ratio Jan 2019 28.61... still dropping
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PE ratio rose to 29.36 over the past week or so from 28.41 on January the 1st.
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Today PE on Friday 22nd up to 30.56. This is a bear rally and I wouldn't expect to see a higher high.
Comment:
Turns out, if you had exited the equity markets when the Shiller PE ratio went down 10% - as is shown above - it actually would have been a good time to enter bonds (with yields above 2% - so recent and yet so far in our memory now). Gains in t-billd bought then would have more than made up for missing out of the upside post late 2018 bear market. Unfortunately, I didn't take my own advice and went into emerging market bonds instead :) Their returns remain strong but the local currency is down 12% vs the USD in a month. Oh noes

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