The Wall Street Challenger

A Critical Comparison: P/E Ratio for Stock Market Valuation is Affected by Interest Rates, Inflation and Monetary Policies

Is it time to worry about another stock market bubble? With the SPX index hovering near an all-time high, it’s controversial whether stocks are over-valued, fair market, or under-valued. The Wall Street Challenger introduces MAPE, Monetary-Adjusted Price-Earnings ratio, built off of Shiller's widely accepted CAPE algorithm and improves traditional P/E ratio accuracy in signaling market tops or bottoms as a result of expected monetary policy effects. - September 17, 2015