CAPE ratio analysis suggests massive downside risk on SPX/DJI
CAPE (Shiller PE) Ratio: The CAPE ratio is a valuation measure that uses real earnings per share (EPS) over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle.
Multi-year CAPE ratio analysis suggests that the downtrend that could last years possibly has only just begun. The CAPE ratio Retraced to the 0.618 and now it should start going back down, it can go down in either of 2 ways, earnings of companies grow faster than price (highly unlikely in an already overhyped market) or prices of stocks going down faster than earnings going down.
Multi-year CAPE ratio analysis suggests that the downtrend that could last years possibly has only just begun. The CAPE ratio Retraced to the 0.618 and now it should start going back down, it can go down in either of 2 ways, earnings of companies grow faster than price (highly unlikely in an already overhyped market) or prices of stocks going down faster than earnings going down.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.