• 067. Two investment metrics you should understand - CAPE ratio and SORR

  • Jul 22 2024
  • Length: 40 mins
  • Podcast

067. Two investment metrics you should understand - CAPE ratio and SORR

  • Summary

  • Understanding the CAPE (Cyclically Adjusted Price-to-Earnings) ratio and SORR (Sequence of Returns Risk) matters if you’re investing in the stock market and making future plans based on those investments. These metrics provide a stable benchmark for valuation and can help identify market bubbles or periods of undervaluation; they’re important to understand and can help inform your future plans.


    Andrew joins this week’s podcast as we talk about:

    - What CAPE ratio and SORR stand for and how to calculate them

    - How CAPE ratio is different from the standard P/E ratio

    - The methodology behind the CAPE ratio calculation and SORR

    - Why you’d want to understand these metrics

    - How these metrics might influence your early retirement plans and timing

    - Strategies to mitigate SORR


    Get the full show notes, show references, and more information here: https://www.insideoutmoney.org/067-two-investment-metrics-you-should-understand-cape-ratio-and-sorr/

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