CAPE ratio

Expensive valuations of the S&P 500 index, combined with all-time high U.S. household equity holdings, have been signaling high investor optimism despite looming uncertainties surrounding fiscal policies. What Happened: As the market is grappling with uncertainties around the tariff and tax-...

The S&P 500 index could still be hovering in the bubble territory as the cyclical adjusted price-to-earnings ratio, or the S&P 500 Shiller CAPE ratio, remains above the level of 30 for 18 consecutive months, underscoring a rare historical trend. What Happened: Unlike the trailing P/E, the...

A new report in The Regional Economist by Silvio Contessi focuses on the difficulties of identifying an asset pricing bubble in real time. While it seems easy to identify bubbles such as the housing bubble and the dot com bubble in hindsight, identifying a disconnect between asset price and asset...

After a strong close to trading last week, the S&P 500 is once again nearing all-time highs. The six-year bull market that followed the Financial Crisis has been good to many investors.