In the world of market valuation metrics, few have gained as much prominence as the Shiller P/E Ratio, also known as the Cyclically Adjusted P/E (CAPE) Ratio. Made famous during…
Tag: Shiller P/E
We Might Be in a Bubble, But You Probably Shouldn’t Care
By Jack Forehand, CFA, CFP® (@practicalquant) — The recent rise in stock market interest among retail investors has certainly been apparent among my friends. In normal times, I might get an occasional…
The Market May Not Be As Expensive As You Think
By Jack Forehand (@practicalquant) — The consensus opinion among followers of the market has been pretty consistent for some time now. The general belief is that the stock market is trading…
Robert Shiller on the Pricey U.S. Market
Nobel Laureate and Yale professor Robert Shiller recently wrote for the Project Syndicate about the comparative levels of market valuation across countries and how, “right now, the United States is…
High Stock Values and the CAPE
The cyclically adjusted price-earnings ratio (CAPE) should not be a focus around current equity price levels, according to a recent Bloomberg article. The CAPE now stands at 30, the article…
Shiller Tracks Past Bear Markets
In a recent article for MarketWatch, Yale professor and Nobel Laureate Robert Shiller shares insights on past bear markets in the U.S. and how the current market environment resembles the…
The Pros and Cons of the Shiller P/E Ratio
By Jack M. Forehand — The Shiller P/E (CAPE) Ratio has become one of the most widely followed market valuation metrics. It became popular during the Technology bubble in the…
Shiller Says Market Valuations Warrant Caution
Nobel Laureate Robert Shiller writes in a recent New York Times article that “today’s CAPE is sending a troubling message,” noting that the market valuation ratio he developed (which now…
The Market Valuation Snapshot
In our Hotlist newsletter from last month we took a look at the market’s stretched valuations based on several indicators, and offered insight regarding how actions by the current administration…
Is Shiller's CAPE as Scary as it Seems?
In the 1990’s, economists Robert Shiller and John Campbell created a valuation metric called the “cyclically adjusted price-earnings” ratio, or CAPE. A Wall Street Journal article from earlier this month…