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progree

(12,275 posts)
11. Isn't the earnings denominator in CAPE an inflation-adjusted average of past 10 years?
Tue Aug 11, 2020, 09:39 AM
Aug 2020

Hasn't the CAPE been above 1929 levels for a few years now? Anyway, since it's an average of 10 years (40 quarters), it is pretty insensitive to change, such as the one disastrous quarter so far (Q1).

What worries me is earnings now: Q1 2020, which are down 66% from Q1 2019, with Q2 looking like it's going to be way worse (given that the GDP decline in Q2 was much more severe than in Q1), post#6 bottom

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