JEPI - MacroView: A Permanent Shift In Valuations?

During extended bull markets, rationalization becomes commonplace to justify overpaying for value. One such rationalization is the permanent shift in valuations higher due to changes in accounting rules, share buybacks, and greater adoption by the public of investing (aka ETFs).

The chart shows the apparent shift to valuations.

1. The "median" CAPE ratio is 15.24 times earnings from 1871-1980.
2. The long-term "median" CAPE is 16.52 times earnings from 1871-Present (all years).
3. The "median" CAPE is 22.91 times earnings from 1980-Present.

There are two critical things to consider concerning the chart above.

1. The shift higher in MEDIAN

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