Meb Faber’s CAPE value model returned 21% in 2013 but seemingly didn’t do so well in 2014. However that’s only the case if you’re looking at your returns in USD. converting the start and end of year values to euros and local currency, the return is around zero. You can see my CAPE 2014 data in Google sheets. OK, so an average return of 0% is nothing to write home about, but it’s not quite as bleak as -13%. The next question is how easy it would be to hedge the currency risk. Any ideas? Also it would be interesting to see what the 2013 returns were in local currency. Maybe that’s a project for tomorrow.