A Different View on CAPE

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:

—-

—-

Download PDFs

Cape Around the World: Update 2014 – The Relationship between Risk and Return

Website

http://www.wellershoff.ch