CAPE ratio calculates long-term valuation by averaging 10 yrs of inflation-adjusted earnings. High CAPE ratios suggest potential overvaluation and future poor returns, low CAPE indicates good buys.

Looking at a 150-year history of the cyclically-adjusted price-to-earnings (CAPE) ratio of the S&P 500 index suggests that the stock market is very overvalued. However, this analysis ignores that ...

Higher Cyclically Adjusted Price Earnings (CAPE) Ratio correlates with lower expected S&P 500 returns. However, the data is very noisy and thus using CAPE ratio as a predictor of returns is very ...

Since we specialize in options here at Schaeffer’s Investment Research, I usually focus on technical analysis, sentiment gauges, and seasonal patterns. These types of indicators lend themselves to ...