Gavekal Capital: Shiller PE Hits New Cycle High of 24.4

Monday, November 4, 2013

Shiller PE Hits New Cycle High of 24.4

Multiples continued to expand in October as the Shiller PE hit a five year high of 24.4. Based on about 120 years of data, this implies a prospective 10 year nominal annualized return for stocks of something close to 0%. If this comes to pass then dividends will be responsible for 100% of returns over the next decade.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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