{"id":348961,"date":"2025-10-10T17:48:23","date_gmt":"2025-10-10T22:48:23","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/10\/10\/scary-picture-econbrowser-2\/"},"modified":"2025-10-10T17:48:23","modified_gmt":"2025-10-10T22:48:23","slug":"scary-picture-econbrowser-2","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/10\/10\/scary-picture-econbrowser-2\/","title":{"rendered":"Scary Picture? | Econbrowser"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div id=\"post-58318\">&#13;<br \/>\n\t\t\t\t<!-- .entry-header -->&#13;<br \/>\n&#13;<\/p>\n<div class=\"entry-content\">\n<p>Prepping for my lecture on Monday, I plotted this graph of the Cyclically Adjusted Price Earnings (CAPE) ratio against the 10 year Treasury yield.<\/p>\n<p><a href=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/10\/shiilerpix4a.png\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-58319\" src=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/10\/shiilerpix4a.png\" alt=\"\" width=\"835\" height=\"590\" srcset=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/10\/shiilerpix4a.png 835w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/10\/shiilerpix4a-300x212.png 300w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/10\/shiilerpix4a-768x543.png 768w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/10\/shiilerpix4a-624x441.png 624w\" sizes=\"(max-width: 835px) 100vw, 835px\"\/><\/a><\/p>\n<p><em><strong>Figure 1<\/strong>: Standard and Poor Cyclically Adjusted Price Earnings (CAPE) ratio (left scale), and ten year interest rate (right scale). Source: <a href=\"https:\/\/img1.wsimg.com\/blobby\/go\/e5e77e0b-59d1-44d9-ab25-4763ac982e53\/downloads\/4a0629e8-3f7f-4884-817b-81cf106d8f88\/ie_data.xls\">Robert Shiller<\/a>, accessed 10\/10\/2025<\/em><\/p>\n<p>However, the Trump-inspired sell-off today should begin the process of bringing the price\/earnings ratio in line with fundamentals, at least for the Magnificent-7.<\/p>\n<\/p><\/div>\n<p><!-- .entry-content -->&#13;<br \/>\n\t\t&#13;<\/p>\n<footer class=\"entry-meta\">&#13;<br \/>\n\t\t\tThis entry was posted on <a href=\"https:\/\/econbrowser.com\/archives\/2025\/10\/scary-picture-2\" title=\"2:02 pm\" rel=\"bookmark\"><time class=\"entry-date\" datetime=\"2025-10-10T14:02:45-07:00\">October 10, 2025<\/time><\/a><span class=\"by-author\"> by <span class=\"author vcard\"><a class=\"url fn n\" href=\"https:\/\/econbrowser.com\/archives\/author\/menzie_chinn\" title=\"View all posts by Menzie Chinn\" rel=\"author\">Menzie Chinn<\/a><\/span><\/span>.\t\t\t\t\t\t\t\t<\/footer>\n<p><!-- .entry-meta -->&#13;\n\t<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/econbrowser.com\/archives\/2025\/10\/scary-picture-2\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] &#13; &#13; &#13; Prepping for my lecture on Monday, I plotted this graph of the Cyclically Adjusted Price Earnings (CAPE) ratio against the 10<\/p>\n","protected":false},"author":1,"featured_media":348962,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[155],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/348961"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=348961"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/348961\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/348962"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=348961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=348961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=348961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}