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Our valuation ratios - shares are cheap when the yellow oscillators are near the bottom of their range. Orange lines are our year on year projections.

Visitor: There is more to valuing shares than PE ratios or Earnings Yield. How does Investors RouteMap take inflation into account?

RouteMaster: Indeed. We have another type of chart that shows real yield (or earnings yield) after adjusting for inflation. It doesn't matter if you don't fully grasp the mechanics. Investors RouteMap is built so you can easily understand the conclusion in a chart.

In the case of valuation ratios the closer to the bottom of the chart, the better. Where necessary, the vertical axes have been inverted, as here, to maintain this convention consistently in all charts.

Incidentally have you spotted our colour coding – indexes are white, variables are yellow and Best Guesses are orange, while buy & sell signals are red arrows.

Here you can see that shares have collapsed a long way with justification, but that the fair value indicator is now near the bottom of its range, suggesting the latest fall has taken the market into under-valued territory.