Buy value and you won't have the problem of lower earnings per invested dollar. There are pockets of value out there, you just need to find them.Ari wrote: ↑Thu Sep 14, 2017 12:24 amSeems pretty straight-forward to me, really. Higher P/E means lower earnings per invested dollar. Of course returns are going to be low. I don't think the predictive power of CAPE when it comes to future earnings has much if anything to do with mean reversion. You simply have to pay more for the same amount of return.
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