The Meb Faber Show · Friday, October 30, 2026
Meb Faber points out that U.S. stocks are sitting among the most expensive levels in history as of July 2026. Measured by the 10-year cyclically adjusted price-to-earnings Shiller-CAPE ratio, the market is sitting around 40 compared to a long-run average of 18 or 23 during low inflation periods.
“As measured by the 10-year cyclically adjusted price-to-earnings ratio, the Shiller-CAPE ratio, it's sitting around 40 as of the end of July 2026. versus a long-run average around 18 or 23 during periods of low inflation, and a historical max of around 44,000.”