CAPE Fear

(1) The CAPE caper. (2) Valuation, like beauty, is in the eye of the beholder. (3) Does the market look one year in the future or 10 years into the past? (4) WSJ’s version of CAPE ratio less alarming than original. (5) 20% of US equity portfolios in foreign issues. (6) Shiller’s ratio tracks Tobin and Buffett ratios. (7) On balance, most valuation measures show market is fairly valued to overvalued. (8) Recessions, not overvalued stocks, cause bears markets. (9) S&P 500 and 600 forward earnings at record highs.