Shiller’s CAPE ratio evaluates the price of a stock compared to its historical earnings (adjusted for inflation). On average, the CAPE ratio is 16.71. That’s based on data running from the beginning of 1871 through October of 2016 – well over 100 years of history. What’s CAPE today? As of December 2016, the CAPE ratio is 28. That’s 75% higher than the average of 16.71…

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