A few weeks ago, I covered the latest offering from GMO’s James Montier and Matt Kadnar, who pointed out that the S&P 500 bubble is now trading at its second or third (depending on which measure you use) most expensive level in history. Using the Shiller P/E, which normalizes earnings from their current value to an approximate trend using a 10-year moving average, the only times’ equities have been more expensive were 1929 and 1999. Meanwhile, according to the Hussman P/E, named after its creator John Hussman, which seeks to provide more accurate reading than the Shiller P/E by normalizing 10-year…
The S&P 500 Could Fall By 63%
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk