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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1 comment:
We will have a Major correction. All will change. Buckle up buttercup...
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