U.S. Equities First, it turns out that investing in U.S. equities at a CAPE3 in the high 30s yet again turned out to be a disappointing exercise.4 Today the CAPE is down to around 20 (still above long-term average). The valuation adjustment from the high 30s to 20 means that despite continued strong earnings growth, U.S. equities only beat cash by a couple of percent per annum over the whole decade, well less than we expected
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