We look at periods of higher equity valuations using the Shiller P/E ratio. We’re in a period of overvaluation now. In the future investors will look for alternative assets to park their wealth.
What inflation measure is used in CAPE? CPI is a substantial underestimate. Given a more accurate estimate of inflation the stock market may not look so overvalued
What inflation measure is used in CAPE? CPI is a substantial underestimate. Given a more accurate estimate of inflation the stock market may not look so overvalued