Month: August 2025

The Shiller CAPE Ratio and future stock market returns

The Cyclically Adjusted Price/Earnings (CAPE) ratio, developed by Nobel laureate Robert Shiller, compares the S&P 500’s current price to the 10-year average of inflation-adjusted earnings. Why does it matter? Because valuations drive long-term returns. History shows: High CAPE → Lower future returns Low CAPE → Higher future returns This month, the CAPE Ratio hit nearly […]
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