Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Can Caped Crusaders rescue us?
Another valuation method is the Shiller CAPE 10, which stands for Cyclically Adjusted PE Ratio, with a period of 10 years. This metric is cited quite often when claims are made the market is overvalued.
Shiller’s thesis (literally) was that averaging earnings over a period of several years created a valuation measure that could be used to predict future returns, since the longer period tended to smooth out the ups and downs of the economy and give a more accurate picture of corporate fundamentals. The same data we used in the trendline construction can be used to plot the Shiller CAPE.(more…)