My post on the Shiller PE10 ratio calculated using Shadowstats’ alternate to the BLS CPI generated some great discussion about the various flaws in the market-level PE and PE10 – using BLS CPI or Shadowstats’ CPI – ratios. Brett Arends’s WSJ.com ROI blog has a timely post Why Stocks Still Aren’t Cheap examining other measures of [...]
Posts Tagged ‘Shiller PE10’
Alternative metrics to the Shiller PE10
Posted in About, Value Investment, tagged Shiller PE10 on September 2, 2010 | 1 Comment »
Graham / Shiller PE10 calculated using Shadowstats’ CPI
Posted in About, Stocks, Value Investment, tagged CAPE, Shiller PE10 on August 27, 2010 | 13 Comments »
Saturna Capital has an interesting take on the calculation of the Graham / Shiller PE10, otherwise known as the Cyclically Adjusted Price Earnings ratio (CAPE). Saturna argues that The Market May Be Cheaper Than It Looks because the Consumer Price Index (CPI) provided by the Bureau of Labor Statistics (BLS) understates the true rate of inflation, a key [...]

