Are today’s Price-to-earnings ratios reasonable? Or too high?
Yale’s Nobel laureate Robert Shiller developed the cyclically-adjusted price-to-earnings (CAPE) ratio to address this question. The answer? Today’s P/E ratio is almost twice the historic average.
If you like the Shiller CAPE ratio, you can invest in the Barclay’s or Doubleline Enhanced CAPE products.
DoubleLine Shiller Enhanced CAPE seeks total return total return in excess of the Shiller Barclays CAPE US Core Sector Net ER USD Index by using a combination of derivatives, and direct invests, to earn a returns that closely tracks the performance of the index. The Fund will also invest in a portfolio of debt securities to provide additional long-term total return.