RIM 25 Q2 Newsletter

The S&P 500 rebounded 10.8% in the quarter, mostly on valuation expansion, as the Schiller P/E (price based on inflation-adjusted earnings over the last ten years) jumped 9.8%. At 37.9x, it is 72% above its 50-year average, and 41% above its twenty-year average. The Tech Bubble peak was about 44x. Other long-term valuation metrics show the S&P 500 more than 100% above its average historical valuation. Investors should understand that while stocks can keep going higher, a 50% drop in the market would only put it around average historical valuation. This is merely an observation, not a prediction.
RIM 25Q2 letter - Public Version.pdf