Economist Robert Shiller’s cyclically adjusted price-to-earnings ratio continues to climb. At the start of November, the CAPE ratio stood at more than 38 compared with 31 at the end of 2023. Since then, the S&P 500 appreciated another 3.9%.
Examining the CAPE ratio since the start of 1999, it reached more than 44 at the end of 1999 during the heyday of the dot-com bubble. The low was 13.2 in March 2009 amid the Great Recession. The median CAPE ratio is 26.7.
The CAPE ratio is based on the inflation-adjusted S&P 500 price compared with 10-year earnings.
