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re: CAPE Ratios: How much weight should we assign to them in choosing markets?

Posted on 8/8/13 at 6:39 am to
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 8/8/13 at 6:39 am to
Do these comparisons use the same definition of earnings regardless of country? Accounting rules do vary somewhat after all.
Posted by NC_Tigah
Carolinas
Member since Sep 2003
124188 posts
Posted on 8/8/13 at 8:13 am to
quote:

Do these comparisons use the same definition of earnings regardless of country? Accounting rules do vary somewhat after all.
Correct.
Faber notes the same. Indicates he tries to account for those variances. But there is likely some inherent error rate in the numbers. Presumably it's small.
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