I wanted to take a look at another long term valuation metric to see how it does relative to our CAPE metric from our paper Global Value: Building Trading Models with the 10 Year CAPE . So, we ran the same study with dividends as we did with earnings. Short summary: CAPD works well but CAPE is the winner…also didn’t seem to matter what timeframe one used for dividends…
Off to the beach in Sayulita for some fish tacos and stand up paddleboarding…
