A.I.M. Users Bulletin Board

[lrp42]

Hi Steve,

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"BTW: I'm seeing a lot or articles about how toppy the market is right now. Words like 'Bubble' 'Correction Due', and phrases like 'third biggest bubble since records began.' The other two being I think 1904 and 1999"
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One metric I think that those articles might be referring to is the Shiller PE10 ratio.

http://www.multpl.com/shiller-pe/

It is currently at 26.21. This is just about as high as it was when the bear market began in 2008 and almost as high as it was in 1929. It still has a way to go before it gets as high as it was in 1999 when its maximum PE10 ratio was 44.20.

The Mean for the Shiller PE10 ratio is 16.55 and the Median is 15.93. So the current reading of 26.21 is really "toppy" compared to its Mean and Median.

Of course, I could be wrong about what metrics the authors of those articles are using for those comments.

Best regards,

Ray