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DesmondMilesDant OP t1_jefdjua wrote

Reply to comment by grimkhor in I couldn’t find a reason why the Shiller PE ratio traded at a 2x average multiple even if inflation was > 5% over the past 2 years.” by DesmondMilesDant

Yah i totally forgot we have a new bull market so who cares about valuations and what regime we are in. It doesnt matter! 😂

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grimkhor t1_jeffhez wrote

I gave you the reason you asked for. This is not about bull markets or not. It's about that Shiller PE doesn't weight the current valuation very high. If todays market would drop to 0 and no change in inflation so a PE of 0 the Shiller PE would drop from 29 to 26 that's how much a year worth of PE is weighted.

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DesmondMilesDant OP t1_jefgeob wrote

Yah sorry i forgot to thank you for that. 😅 Thank you again sir. Have a great April 2023. 😉

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