Friday, 8 June 2012
CAPE Values for April 2012
I am a follower of Robert Shiller's cyclically adjusted p/e ratio (CAPE). The CAPE seems to work reasonably well for the US and I am always interested in what CAPEs look like for other countries. To date, however, Mebane Faber is the only person that I am aware of that does this type of calculation for other countries.I have taken the data from his recent post and ranked the countries according to CAPE. Italy, Spain, Netherlands and Belgium all have CAPE values below 10. Notice these are all European countries. Canada and the US have high CAPE values.