Leverage And Speculation Are At Extremes
Financial markets often move in cycles where enthusiasm drives prices higher, sometimes far beyond what fundamentals justify. As discussed in last week’s #BullBearReport, leverage and speculation are at the heart of many such cycles. These two powerful forces support the […]
The CAEY Ratio & Forward Returns
Over the last couple of week’s (see here and here), I have been discussing the value of Shiller’s CAPE ratio. The Cyclically Adjusted P/E ratio, or CAPE, is often maligned by the media as “useless” and “outdated” because despite the […]