Rooting for a Stock Price Crash Is Like Rooting for a Hurricane

The Shiller CAPE value is today at 30. That’s nearly double the fair-value CAPE value of 16. I think that’s dangerous. It was a CAPE value of 33 that brought on the Great Depression. I think that it is best for all investors if the CAPE always remains as close to fair-value levels as possible. When the CAPE is at fair-value levels, investors possess a good understanding of the true and lasting value of their stock portfolio, which makes their efforts at financial planning far more effective. A CAPE as high as the one that applies today signals a price crash in the not too distant future, which…

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HEDGE accordingly