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.
On this basis it could be argued that, at that time, since expected returns were well below historic norms, prices were too high.
CAPE is ignorant of interest rates
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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