Brief Description About the P/E Ratio
The p/e ratio is the price of a share of a stock divided by the earnings per share, so it’s the earnings that the company makes during a year divided by the number of outstanding shares. Once calculated the answer is a multiple. This is one of the best valuation metrics that investors have been able to use to judge whether...
Jordan touched on the historical CAPE ratio in our interview as an important evidence...
...that the US equities are closer to an end, than a beginning.
And why gold & silver should also roar!
Of course I had to give it a look.
These things mean revert big time and goes to undervalue before it goes up again. I believe the markets are about to crash might time and this time it can be much violent and faster.
AMEX:SPY
TVC:SPX
QUANDL:MULTPL/SHILLER_PE_RATIO_MONTH
Forget Fear and Make Money
* My English is not good enough, so I make it short and put everything you need to know on the chart.
1- What is Shiller P/E? (Wikipedia))
The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, Shiller P/E, or P/E 10 ratio, is a valuation measure usually...
Into December of 1919, the CAPE was at an all-time low. With so much focus on 1919 going into the COVID-19 pandemic among market commentary, the comparison that this chart allows to make is 1919 to 2019, with a suggestion of downtrend. If the SPX indeed returns to multiples in 1919, that would put a market valuation of the SPX at around $500 according to the CAPE...
Shiller vs Spx adjusted for inflation showing--for once this year-- similar correcting price action suggesting 2021 will be a year to witness, fundamentally speaking that is. With real-yield negative, and bonds at all time lows, there remains no interest for anything relative to the inflated SPX.
In 1998, Robert Shiller--the Yale economist and Nobel Prize winner-- formalized that idea in a paper, "Valuation Ratios and the Long-Run Stock Market Outlook" and a book, "Irrational Exuberance." The latter made Shiller something of an economic prophet. In his book, which came out shortly before the dotcom crash, he warned that stocks were overvalued.
What is...
Into December of 1919, the CAPE was at an all-time low. With so much focus on 1919 going into the COVID-19 pandemic among market commentary, the comparison that this chart allows to make is 1919 to 2019, with a suggestion of downtrend.
If the SPX indeed returns to multiples in 1919, that would put a market valuation of the SPX at around $500 according to the...
Into December of 1919, the CAPE was at an all-time low. With so much focus on 1919 going into the COVID-19 pandemic among market commentary, the comparison that this chart allows to make is 1919 to 2019, with a suggestion of downtrend. If the SPX indeed returns to multiples in 1919, that would put a market valuation of the SPX at around $500 according to the CAPE...
