Savvy Trades and Investments

[michael t]

If you look at a chart of Shiller 10 (price earnings ratio which is based on average inflation-adjusted earnings from the previous 10 years, known as the Cyclically Adjusted PE Ratio), we are reaching some rare levels at 28.5. There are two periods on the chart where we reached higher levels. One was just before the great depression (~30) and the other was at the end of the dot.com bubble (~44).