SP500 - Shiller PE Ratio

199
SPY

Looking back we can see where the Shiller PE ratio values provided an insight into buying into the SP500

We have altered courses from the High Interest rates of 1988 - the lows of 2020

I believe we are in a new Inflation cycle. This could result in rising rates over next 20 years.
It makes for a harder decision for buying the market.

If they are not going to truly rally @ 31.31 then will they at 27.08 or lower?

Will the market beat inflation?
Note
snapshot
Note
April 08 2025
Shiller PE ratio is now approx 30.74

Getting close to the Lower line and is this value good enough to buy the market back up?
Note
Well looking back at the events in the first week of April 2025 we can see that they did want to bounce it off the lower trend line.
April 08 2025 the Shiller PE Ratio reading was 30.74
Coincides with the pullback.

The rollover was at approx 37.29 ratio for Jan 2025.
Do you believe we are in a market to see higher valuations than 37.29?

What frenzy with push valuations higher?

We are in a crux here. Either higher and higher valuations pushing up past the resistance line thus into 40s for Shiller ratio or we accept lower prices and demand a lower PE ratio to justify buying.
If the Shiller PE ratio drops again and breaches 30 I hope we get much lower ratios and thus better entries.


snapshot


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