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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Download PDFs
Cape Around the World: Update 2014 – The Relationship between Risk and Return
Website
http://www.wellershoff.ch