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S&P 500 bottom at 2,000 points


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2020 Mar 23, 2:38pm   395 views  0 comments

by AD   ➕follow (1)   💰tip   ignore  

Got this from a friend.

Professor Robert Shiller's dogma is about value.

Shiller was right about the significance of house price to household income ratio back in the mid 2000's. He won a Nobel Prize in Economics.

His Shiller P/E ratio for the S&P 500 is a very helpful gauge of the value of the S&P 500 such as if it is too expensive or cheap. See the link below.

The Shiller PE ratio is now at 16.8 and below the bottom for the 2001/2002 bear market which was around 26.

However the Shiller PE ratio ratio was around 15 for the 2009/2009 bear market.

A lot of what the pundits are stating as far as the S&P 500 bottoming near 2,000 points (from all time peak of 3,393 points) is based on the Shiller PE bottoming at 15, the same level it was around the bottom of the 2008/9 bear market.

https://www.multpl.com/shiller-pe

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