Historical Warning from the Shiller P/E Ratio
- 1The Shiller P/E ratio currently stands at 41, more than double the average Shiller P/E dating back to 1890.
- 2While the S&P 500 index has recorded a 10% increase this year, the market is witnessing a phenomenon that has occurred only twice in 136 years.
- 3Bram Berkowitz stated that a major correction will come and a true bear market will be seen someday.
So what's the key point?
The metric used to see how expensive stock prices are relative to earnings is more than twice the average. Bram Berkowitz said a large correction will occur and a bear market will be seen.
Source The Motley Fool +1 · View original ↗
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