Earlier this week I posted about the current controversy around the cyclically-adjusted earnings in the Shiller PE, most notably the contention that the real earnings used in the Shiller PE are lower than they would otherwise be because of two serious earnings recessions. Another question about the Shiller PE is how accurate it has been historically as a … Continue reading How accurate is the Shiller PE as a forecasting tool? What backtested returns does the current PE forecast?