CAPE’s halo falls with a thud
CAPE is ignorant of interest rates
CAPE
The relationship between stock prices and interest rates
Any prediction based on models can be overwhelmed by what happens in the real world
What to make of declining bond yields
The investor does not have to be an expert in macro-economic theory.
Expected future returns
Today’s investor cannot tell what percentage gain in earnings, dividends and prices he may expect in the next ten years
Stock valuation in an age of intangible assets
About forty years ago Buffett experienced a Damascene conversion
Problems with CAPE Part lll
Wrap up on the drawbacks of CAPE. A fair level for price earnings ratios has changed over the years.
Problems with CAPE – Part ll
Investors are reading CAPE all wrong.
Problems with CAPE – Part l
A CAPE ratio of 26.91 does not prove the stock market is overpriced. The stock market today may be overpriced or underpriced. CAPE using a historic average as a benchmark just doesn’t tell us one way or another
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