What Is Your Take on Cape Ratio?

Barry Ritholtz: Professor Jeremy Segal he teaches macroeconomics at Wharton. We were discussing earlier you're a long-term friend of Professor Bob Schiller who is known for his cyclically adjusted PE ratio. Cape has done a fantastic job at forecasting 10 year returns until the last 10 years when I think it has gone off the rails. Why is that? He says in the 1990s FASB started changing the way firms do their accounting.