The CAPE ratio just hit its 2nd highest level ever. #cappuckhaber #investing #caperatio
The CAPE ratio just hit its 2nd highest level ever. This same number predicted the dot-com crash before it happened. I ignored it once. It cost me. The CAPE ratio—also known as the Shiller P/E or P/E 10 ratio—is a stock market valuation measure created by economist Robert Shiller. It divides a price index by the average of 10 years of inflation-adjusted earnings to gauge if a market is overvalued or undervalued. This is not financial advice. https://simplefinanceblog.com/cape-ratio-explained-beginners-guide/
About Robert Shiller
Robert James Shiller (born March 29, 1946) is an American economist, academic, and author. As of 2022, he served as a Sterling Professor of Economics at Yale University and is a fellow at the Yale School of Management's International Center for Finance. Shiller has been a research associate of the National Bureau of Economic Research (NBER) since 1980, was vice president of the American Economic Association in 2005, its president for 2016, and president of the Eastern Economic Association for 20...
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