MyPlanIQ submits:In a previous article we looked at Yale Professor Robert Shiller's Cyclically Adjusted Price Earning’ ratio (CAPE10). CAPE10 is defined as the ratio of price to the average of last 10 year trailing S&P 500 annual earnings.Complete Story »
MyPlanIQ submits: Yale Professor Robert Shiller has devised and maintained his Cyclically Adjusted Price Earning ratio (CAPE10) as an alternative to the P/E ratio to value the U.S. stock market.CAPE10 is defined as the ratio of price to the average of the last 10-year trailing S&P 500 annual earnings.
MyPlanIQ submits:Yale Professor Robert Shiller’s Cyclically Adjusted Price Earning Ratio (CAPE10) was reviewed October 2009. CAPE10 is defined as the ratio of price to the average of last 10 year trailing S&P 500 annual earnings.
By Ron Rowland:Barclays introduced a new exchange traded note (“ETN”) on October 11 under the ETN+ brand instead of the more familiar iPath brand. The Barclays ETN+ Shiller CAPE ETN (CAPE) will track the Shiller Barclays CAPE US Core Sector Index minus the 0.45% annual fee.
Yale professor Robert Shiller was one of a relative handful of stock-market observers who warned that the bull market of the late 1990s was a colossal bubble in the making. Shiller's book, Irrational Exuberance, was published moments before the 2000 top, and it foretold much of the carnage that was to come.
MyPlanIQ submits:In a previous article we looked at how the CAPE can be used as a signal to drive selection of assets. We created five regions based on the ratio of the current CAPE10 to the long term average CAPE10:
By Junius:With the S&P 500 having risen by almost 30% in 2013, slowing earnings growth and the Fed tapering asset purchases, the outlook for equity markets in 2014 seems more uncertain. Here are a few ETF ideas that might outperform the pack for this year:
1. Barclays ETN+ Shiller CAPE ETN (
Legendary UPenn-Wharton finance professor Jeremy Siegel has a problem with a valuation ratio developed by legendary Yale economist Robert Shiller. In a new piece for The Financial Times, Siegel goes after Shiller's cyclically-adjusted price-earnings ratio (CAPE).