Echoes Of 2000: The Shiller PE Ratio Enters Bubble Zone

History Repeating? The Shiller PE Reaches a Level Seen Only Once Before

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The Shiller PE ratio is the price to earning ratio using inflation-adjusted earnings. It calculates how much investors are willing to pay for $1 worth of company earnings. The current Shiller PE ratio is at 40.36. The only other time it has been above 40 was in 2000 during the technology bubble. 
 

Source: Multpl, Yahoo Finance, The Business Week Graphic
This graph was produced by Lucas Juery, CFA, CFP
and is not intended to provide financial advice.


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