This IS a bad time to buy stocks,
as CAPE index indicates.
Not exact matches
For decades, top value investors and market brainiacs have embraced the highly - regarded
CAPE index as one of the most reliable yardsticks for weighing under versus overvalued markets.
Foreign Developed and Emerging Markets equity valuations are also attractive relative to their own history
as represented by the 70th (
CAPE) and 50th (P / B) historical percentile ranking for the MSCI EAFE
Index, and the 25th (
CAPE) and 64th (P / B) historical percentile ranking for the MSCI Emerging Markets
Index.
Popular metrics of aggregate market valuation, such
as Wilshire Total Market
Index to U.S. GDP, price to forward earnings ratio, price to book value ratio, price to cash flow ratio, cyclically adjusted price to earnings ratio (
CAPE), the ratio of annual forward dividend to price (dividend yield), indicate the U.S. stock market is overvalued by between 10 per cent and 60 per cent.
The Derived Stability
Indices such
as Convective Available Potential Energy (
CAPE), Lifted
Index (LI), Totals Total (TT), Showalter
Index (SI), and the K -
Index (KI) will be computed from the retrieved atmospheric moisture and temperature profiles.