Expect A "Lost Decade", Mish Warns Stock Market Rout "Only Just Starting"

October has been a terrible month for equities. Yet, this is only a start of what's to come...

Decline Barely Started


Despite the rout, the S&P is just barely down for the year.
Expect a "Lost Decade"

Why?

The Shiller PE Ratio also known as "CAPE", the Cyclically Adjusted Price-Earnings Ratio, is in the stratosphere. It's not a timing mechanism, rather it's a warning mechanism.

The main idea is that earnings are mean reverting.

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