Just as I was happy 2009 was rolling off the CAPE calculations, here comes 2020. I will have to put CAPE investing on hiatus for another decade.
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I have not seen studies on this
I mean doesn't it make sense though? CAPE is price over 10 years of earnings averaged accounting for inflation. Those earnings are pre-tax. If you keep more of those earnings, it doesn't make sense to compare the post-tjca cape to pre-tjca, no?
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I'm familiar with their work a little bit. I think the general thesis, that you can apply CAPE to foreign countries is correct, but does not consider enough the inherent competitive advantages of the United States (not just governmental and economic).
End of conversation
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