The CAPE Ratio is far from perfect, but it is an interesting measure to judge valuations. For example, shortly before the dot.com bust in 2000, the Schiller Ratio was at 44.
The historical average is 16.7 and on Tuesday, January 9, 2023, the Shiller Ratio was 28.66 similar in prices to 1929.
The Shiller Ratio Is Telling Us There Is More To Come
January 11, 2023