A Cautionary Note about Robert Shiller’s CAPE PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. CFA Digest February 2011 | Vol. 42 | No. 1 | 2 pages Source: CFA InstituteStephen E. Wilcox, CFAThomas M. Arnold, CFA (Reviewer) Read Abstract The author evaluates why the cyclically adjusted price-to-earnings ratio (CAPE)may be biased, including changes in the composition of the U.S. Consumer PriceIndex, tax treatment, and earnings recognition over time. Because the CAPE iscompared with a long-run mean (data starting in 1871), the changes may makecomparisons with the historical CAPE (or measures based on the historical CAPE)inaccurate. View more information Topics Economics : Relationship of Economic Activity to the Investment Process | Equity Investments : Equity Market Valuation and Return Analysis | Financial Statement Analysis : Financial Reporting Quality · Ratio and Financial Analysis Credits · About the CE Program 0 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits Loading ...