Stock valuations bubble
Stock Market Bubble Valuations When addressing stock market bubbles it’s important to consider multiple valuation methods to gain a clearer view of where the bubble is concentrated. While there are other — more preferable/accurate — methods of stock market valuation, a useful “first stop” would be Robert Shiller’s Cyclically Adjusted Price to Earnings Ratio (CAPE) for the S&P500 stock index. While stock valuations are high, equiti As you can see below, today's CAPE ratio is only beat by the 2000 technology bubble and is far higher than it was during the 1920's pre-depression peak: