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"First 10 Failed Historical Sequences" table

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(@wolfv)
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In the right margin of Run Analysis page, there is a "First 10 Failed Historical Sequences" table.
What does it mean?


   
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(@hines202)
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Joined: 3 years ago
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I'm away from my office posting this, so can't load PRC to check. But I think from memory that's the one that shows CAPE measurements? The CAPE is a valuable metric - it shows how overvalued the market is. As we've seen recently, when CAPE shoots up, we're due for a reset to bring things back to par. It can be dangerous to enter retirement in a high CAPE due to sequence risk **IF** you are in a situation where you need to sell shares (which is why I have my clients do buckets, to avoid that!). So, you see those scenarios fail in historic simulations.


   
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(@hines202)
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Joined: 3 years ago
Posts: 331
 

I'm away from my office posting this, so can't load PRC to check. But I think from memory that's the one that shows CAPE measurements? The CAPE is a valuable metric - it shows how overvalued the market is. As we've seen recently, when CAPE shoots up, we're due for a reset to bring things back to par. It can be dangerous to enter retirement in a high CAPE due to sequence risk **IF** you are in a situation where you need to sell shares (which is why I have my clients do buckets, to avoid that!). So, you see those scenarios fail in historic simulations.


   
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(@wolfv)
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Joined: 2 years ago
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Topic starter  

@ Bill Hines

You are correct. The "First 10 Failed Historical Sequences" table has column headings "First Year" and "CAPE".
And on my output, the First Years are from 1964 to 1973, when CAPE values where relatively high.
Thank you for the explanation.


   
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