This graph shows how P/Es (10 year, cyclically adjusted) have declined since 2000.
Since the Secular Bear is currently scheduled to continue, we are likely to get another crashish decline in P/Es after this cyclical bull is over.
Meaning that I think we are going to get a lower high followed by a lower low in the 10-year cyclically adjusted P/E shown here.
The only problem I have here is with his use of CPI, but that gets into my problem with Nominal GDP. It’s close enough for illustrative purposes here.
This also illustrates why Crestmont Research considers 1932-1937 to be a Secular Bull market.
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