Why There's A Stock Market Lost Decade Ahead

October has been a terrible month for equities. Yet, this is only a start of what's to come.

The Shiller PE Ratio also known as "CAPE", the Cyclically Adjusted Price-Earnings Ratio, is in the stratosphere. It's not a timing mechanism, rather it's a warning mechanism. The main idea is that earnings are mean reverting. On that basis, stocks are more overvalued than any time other than the DotCom era.

 

 

https://moneymaven.io/mishtalk/economics/expect-a-lost-decade-stock-market-rout-only-just-a-start-44FVOfmLVEG999gIr4ud2Q/

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