Forecasting Equity Returns using the CAPE Ratio | Q2 2021
IntroductionWe update our long-term 10-year forecast for the first quarter of 2021, and in this report, we present our 10-year forecasts for equity benchmarks in the United States, Europe and Japan. The Cyclically Adjusted Price Earnings (CAPE) Ratio is a long-term market valuation metric that averages 10 years of inflation-adjusted earnings. This allows a long-term…