20-Year Real Return vs 10-Year P/E Ratio
Note that returns are real returns and one should add an inflation (say 3%) to get nominal. I think I've beaten the 10-year p/e to death but this chart is more visually obvious than some other data I have posted in the past.
(source: "File:Price-Earnings Ratios as a Predictor of Twenty-Year Returns (Shiller Data).png," Wikipedia.org. Downloaded on Apr 29 2012. Original data from Robert Shiller)Tags: market valuation, Sunday Spectacle