US stock valuations closed the year with the CAPE ratio sitting at 40. Here's what the numbers tell us: historically, whenever this metric has topped 40, the subsequent 10-year real returns across markets have consistently turned negative. Even more striking—not a single instance exists where a nation's stock market wrapped up a year above that 40 threshold and actually delivered positive real returns over the following decade. Worth pondering if you're thinking about portfolio positioning.
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CountdownToBroke
· 01-06 21:38
Damn, CAPE is already at 40, and you're still chasing the high? That's playing with fire.
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GrayscaleArbitrageur
· 01-06 21:37
A CAPE of 40, now I'm really panicking. Ten years of negative returns is no joke.
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PanicSeller69
· 01-06 21:36
Wow, CAPE 40 is really incredible; it has never reversed in history.
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NewDAOdreamer
· 01-06 21:30
Sounds a bit scary... Does a CAPE of 40 mean the next ten years are basically over?
US stock valuations closed the year with the CAPE ratio sitting at 40. Here's what the numbers tell us: historically, whenever this metric has topped 40, the subsequent 10-year real returns across markets have consistently turned negative. Even more striking—not a single instance exists where a nation's stock market wrapped up a year above that 40 threshold and actually delivered positive real returns over the following decade. Worth pondering if you're thinking about portfolio positioning.