Shiller PE Danger Zone

Out along the edges
Always where I burn to be
The further on the edge
The hotter the intensity
--Kenny Loggins

The 'Shiller PE,' named after Yale economist Robert Shiller of Irrational Exuberance fame, is a ten year moving average of stock price to earnings. It is also referred to as CAPE--cyclically adjusted price to earnings.

CAPE is currently north of 27, a level historically associated with excessive valuation and epic market tops.

Doesn't mean they can't run higher...see the dot.com era. Does mean that we're treading in the Danger Zone.

position in SPX