As we highlighted yesterday, stock valuations jumped again in December to another cycle high. As the first two charts show, the cyclically adjusted P/E multiple has only been higher on several occasions and the median stock is trading at a record price to cash flow...
By almost any measure stocks are pricey relative to history. We’ll save the theoretical debate about whether such high valuations are justified for another post, and will instead illustrate with charts just how far valuations have come over the last five years. The Shiller P/E...
The Shiller PE ratio has been getting a good bit of play in the financial press recently so we thought we’d give an update on where things stand. The Shiller PE hit 25.4 yesterday as the S&P 500 briefly eclipsed 1800 on an intraday basis....
Multiples continued to expand in October as the Shiller PE hit a five year high of 24.4. Based on about 120 years of data, this implies a prospective 10 year nominal annualized return for stocks of something close to 0%....
We received a question today regarding the usefulness of the Shiller P/E. For starters, it has a wonderful long-term history. There aren’t many series where we have 130 years of history....
