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.”grimkhor t1_jeffhez wrote
Reply to comment by DesmondMilesDant 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
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.
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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