The modern poster child for bubbles is Japan. From 1975-1989, the Nikkei rose 883%, or 16.5% a year. In that 15 year period, it had just one down year in 1977, when it fell 2.5%. It went from a CAPE of 20 in 1981 to a CAPE of 94.3 in 1989. What if an investor decided to detach from the herd once the CAPE ratio hit 50?
Read Full Article »Now That Would Be A Stock Bubble
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