Therefore, to compensate for the potential “duration mismatch” of a faster-moving market environment, I recalculated the CAPE ratio using a 5-year average, as shown in the chart below.

Cyclically adjusted price-to-earnings (CAPE) ratio, also known as the Shiller PE ratio, is a valuation metric used by investors to assess whether a stock or the broader market is overvalued or ...

If the ratio is above the long-term ... Credit Suisse's Andrew Garthwaite often runs this chart of average 3-year forward returns for a given level of CAPE. "We recognize that some investors ...