The Equity Risk Premium and what to use it for
On this basis it could be argued that, at that time, since expected returns were well below historic norms, prices were too high.
discount rate
CAPE’s halo falls with a thud
CAPE is ignorant of interest rates
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
You must be logged in to post a comment.