Latest / The Investing for Beginners Podcast - Your Path to Financial Freedom
What the Shiller P/E (CAPE) Can and Can’t Tell You
A listener named Chris emailed in with a question a lot of investors are quietly thinking: if the CAPE ratio is around 40 and forecasts say future stock returns could be low, why keep investing at all—especially when CDs, T-bills, and high-yield savings accounts are paying 4–5%? In this episode, Andrew and Stephen break down what CAPE (the Shiller P/E) actually measures, why it’s elevated, and how to use it as a long-term expectations tool without turning it into a market-timing panic button.
They also dig into the psychology behind investing when valuations feel “stretched,” why behavior…
The skinny
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