Hello /r/stocks,
Recently, I came across a modified PE ratio, which predicts stock market bubbles, such as 1929 or 2000. This recent drop was TOTALLY predictable. Even before yield curves inverted, the Shiller PE Ratio predicted this recession.
The entire cause of this drop is pure ignorance. It is not 'rates rising', it is not 'inflation'. It is ignorance. Those things are just consequences of it. The Intelligent Investor is almost 100 years old, how come Wall Street is too braindead to follow these common-sense rules?
Just remember that the dip is probably not going up for a while. Based off the CAPE Ratio chart, we should have a roughly 40-50% drop in the Nasdaq, from the peak. As for the S&P, It is harder to predict, since it has much more factors concerning it. Also, I found the best time to buy the dip is when CEOs are buying, and currently, they aren't.
tl;dr: Benjamin Graham was right all along.
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