A version of this post was originally published on TKer.co.
Let’s talk about the CAPE ratio. It’s one of the most widely-followed stock market valuation and investing metrics. It’s being talked about more as investors wonder whether stocks are poised to lose ground in 2022. Unfortunately, the signal of doom it supposedly sends is a myth.
CAPE, or cyclically adjusted price-earnings, was popularized by Nobel prize-winning economist Robert Shiller. It’s calculated by taking the price of…
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