Reported 2 days ago
The article discusses the elevated Shiller CAPE Ratio, currently at 38, which indicates potential underperformance in the stock market. Historical data shows that when the CAPE Ratio exceeds 25, the S&P 500 typically averages a return of only 6.6% over the next year, significantly lower than the 15.4% return when the ratio is below 12. The findings suggest that long-term investors should be cautious as elevated CAPE Ratios correlate with diminished stock performance.
Source: YAHOO