Buying equity markets below 10x CAPE has historically delivered very high long-term returns (PIMCO data showed ~120% over 5 years), while buying above 40x CAPE (where the US closed the year) has never produced an above-average 10-year real return in the historical database; but these valuation signals only work over ~10-year holding periods, not the next year or two.
factualpending
Speaker
Russell NapierEvidence Quote
“these valuation metrics really don't help you with the next year. So if anyone's interested in the next year, these aren't going to be very helpful.”
Created: 6/18/2026, 1:59:14 PM
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