Subject: Re: S&P 500 hits record high
What about Cyclically Adjusted PE?

There was an excellent study of CAPE and future market returns done by one of the board members here (tedthedog), which he posted at

https://www.shrewdm.com/MB?pid...

Take a look at the Dropbox link within that post for the charts showing CAPE on the x-axis and forward returns on the y axis.

Ted found that during various 10-year periods after 1995, higher CAPE ratios were correlated with low total market returns over the subsequent 10 years, but he was unable to find a correlation in 10-year periods before 1995.