S&P 500

Shiller PE at 40+

It’s a Long Way down Back to Average!

DYI:  Have you ever walked down a flight of stairs thinking you’re already at the bottom but you have that last step letting out that sound upon arriving at the bottom?  Or jumping down from 6 or 7 feet and after you did thinking you won’t do that again?

Valuations are an excellent downside protection method keeping the height ever closer to the ground avoiding hurting ourselves financially. 

Today the S&P 500 Shiller PE is back in the low 40’s range (41.66) along side their dividend yield of only 1.06%!  The average S&P 500 Shiller PE since 1871 is 17.38 represents a DROP back to normal – 58.28%

(41.66 – 17.38) ÷ 41.66 X 100 = -58.28% 

More importantly the time it takes for markets to make their respective round trip (top to bottom back to top) since we’re all mere mortals attempting to “Put it all together!”

This U.S. stock market mania that began all the way back to 2018 and really got moving into crazy land back in 2023!  Valuation players, especially at major turning points become contrarian bearish investors – are seen as out of step with the new realities – or simply appear to be stupid or crazy.

Welcome to the world of The Dividend Yield Investor!