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We Have Lost All Sense of Decorum

The Compound and Friends

CHAPTER

The Schiller PE Ratio Is Now 30ish

The Schiller PE ratio tries to normalize for the economic cycle takes 10 years worth of earnings. Adjust by inflation. And it's very high right now, but you can see on this chart that it's been climbing. When the Schiller ratio crashed in 2009 at the bottom after a 57% drop in the stock market, it was barely below the long-term historical average.

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