A Different View on CAPE

July 31, 2014

Joachim Klement has an update to some of his papers, and while he has some different takes on CAPE and value, he had one chart that I loved on CAPEs and future drawdowns. Not surprisingly, the more you pay for something, the chance of a bigger loss goes up as well…

The chart then downloads:

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Website

http://www.wellershoff.ch