The Shiller P/E or the cyclically-adjusted price-to-earnings (CAPE) ratio of a stock market is a market valuation metric that eliminates change of the ratio caused by the difference of profit margins during business cycles. It…
The CAPE ratio has some predictive ability so you can create your investment strategy based on the CAPE. The CAPE ratio is a variety of the P/E ratio. Just like the P/E ratio, the CAPE…