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What are the historical trends of the US CAPE ratio and its correlation with cryptocurrency market performance?

Bruno MarsMay 03, 2022 · 3 years ago1 answers

Can you provide a detailed explanation of the historical trends of the US CAPE ratio and how it is correlated with the performance of the cryptocurrency market?

1 answers

  • May 03, 2022 · 3 years ago
    The US CAPE ratio, also known as the Shiller PE ratio, is a valuation measure that takes into account the average inflation-adjusted earnings of the S&P 500 index over the past 10 years. It is widely used by investors to assess the overall valuation of the stock market. A high US CAPE ratio suggests that the stock market may be overvalued and could be due for a correction, while a low US CAPE ratio indicates that the stock market may be undervalued. As for its correlation with the cryptocurrency market, there is limited research available on this topic. However, it is worth noting that both markets can be influenced by similar factors such as investor sentiment, economic conditions, and regulatory developments. Therefore, it is possible that there could be some correlation between the US CAPE ratio and the performance of the cryptocurrency market.