This is a summary of links featured on Quantocracy on Thursday, 06/21/2018. To see our most recent links, visit the Quant Mashup. Read on readers!
CAPE of Good Hope? P/E Divergence as a Performance Signal [EconomPic]Lawrence Hamtil recently shared a Vanguard paper with me that was surprising given it indicated the trailing twelve month price-to-earnings ratio "TTM P/E" was nearly as strong a predictor of forward 10-year equity returns as the cyclically adjusted price-to-earnings "CAPE" ratio going back to 1926. My assumption had been that the CAPE ratio (which uses smoothed 10-year real