Do you think we’re in a bubble right now? Shiller P/E ratio is at double its historic average right now (34.5 vs 16.8)…
The only times the Shiller has been over 30 were:
- 1929 - Then crashed 89%
- 1997-2000 - Hit high of 44.2 then crashed by over half
- 2018 - Crashed 19.8%
- 2020 - Covid related, but still crashed 34% in a month…
Are you rebalancing or moving around assets right now to safer stocks??
Edit - Shiller is the same as CAPE (Cyclically adjusted P/E), essentially the price compared to a 10 year average of inflation adjusted earnings.