Jeremy Siegel on the Stock Market Under Covid-19 (Podcast)
Masters in Business
00:00
What Do You Think of CAPE?
The cyclically adjusted price to earnings ratio was created by Bob Schiller. It hasn't worked especially well as a timing tool, but it can give you some insight into future expectations. "I do look at what I think is normal earnings," he says. He thinks the new normal PE ratio today on normal earnings is 18 to 20.
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Transcript
