32 times earnings puts the S&P 500 at its richest valuation since just before the 2020 pandemic-era crash, reviving a closely watched warning signal for U.S. stocks.
Readings above 30x have been rare historically, with prior episodes occurring around the dot-com bust, the 2008 financial crisis and the 2020 selloff.
The report argues the signal matters most for investors needing near-term safety—such as retirees or buyers with upcoming cash needs—because a sharp correction could hit portfolios before they recover.
Longer-term investors are urged not to try timing a pullback, but to keep adding money steadily through broad index funds using dollar-cost averaging, such as fixed monthly contributions.