Shiller CAPE (Cyclically Adjusted Price To Earnings) Ratio At 30.31, Almost Twice The Historic Average of 16.61

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.

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If you like the Shiller CAPE ratio, you can invest in the Barclay’s or Doubleline Enhanced CAPE products.

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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.

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