Here’s a good example where two very famous economists – Robert Shiller of Yale and Jeremy Siegel of The University of Pennsylvania Wharton School – use the same data but come to very different conclusions about where the stock market is going. You can decide for yourself who is right.
By way of background, CAPE stands for Cyclically Adjusted Price/Earnings ratio. The Price/Earnings or P/E ratio is widely used to determine if the price of a particular stock is high or low. It is simply the price of the stock divided by the current (or projected) earnings per share for the company. What CAPE does is average this over a 10-year period and adjust for inflation.
This video was posted in May of 2019, but dates given in the talk seem to indicate that it took place early in the 4th quarter of 2018. Since then the stock market went down significantly in December of 2018 but after that has gone up considerably, so in the short term you could say that Siegel was right. Or perhaps Shiller is right, just not yet.