Nobel Prize Winning Economist Robert Shiller Just Issued a Stark Warning For Investors -- Here's Where He Sees Stocks Heading Over the Next 10 Years

Shiller's long-term equity forecasting model is based on his cyclically adjusted price-to-earnings ratio, known as the CAPE ratio or the Shiller P/E. The CAPE ratio looks at earnings from the past 10 years and adjusts them for inflation. It then divides the current market price by the average of the inflation-adjusted earnings. The indicator effectively smooths out the impact of the market's cycles, providing a clearer picture of where valuations stand in a historical context.However, he suggests that it co ...