Stock Market Cycles

Stock Market Cycles

The Cliff - Don't Be a Lemming

P/E Ratio of S&P500 stocks reveals a cliff of red downward pointing cycles

Lars von Thienen's avatar
Lars von Thienen
Dec 08, 2024
∙ Paid
US stocks on top of a cliff?

I recently analyzed the price-to-earnings (P/E) ratio of the S&P 500 stocks, focusing on the Cyclically Adjusted P/E ratio. The CAPE or Shiller P/E is a widely used valuation metric that helps investors determine whether the market is overvalued or undervalued based on historical earnings. As of the time of writing, the CAPE …

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