Blog: Predicting The Next Market Crash Using Shiller P/E Ratio

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4 comment(s). Last comment by stockoperator 2014-05-01 04:34

fortunebullz

2,000 posts

Posted by fortunebullz > 2014-04-28 21:56 | Report Abuse

PE is one thing, but complement indicator is earnings and revenues! If forecast earnings and revenues flat year round yet market price marching like F1 better be wary!

valuezorro

35 posts

Posted by valuezorro > 2014-04-30 07:06 | Report Abuse

especially if the index is pushed up by small time retail traders who trade only in small caps stocks...

stockoperator

936 posts

Posted by stockoperator > 2014-05-01 04:34 | Report Abuse

Dear Author, after the study, I found that the Shiller PE of 25 is more skewed than absolute PE of 18. Why? Because Absolute PE has moved on but Shiller PE is stuck with High PE of 2007.

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