S&P 500 price-to-earnings ratio surpasses 30 for fourth time
Updated
Updated · The Motley Fool · May 4
S&P 500 price-to-earnings ratio surpasses 30 for fourth time
3 articles · Updated · The Motley Fool · May 4
The threshold was crossed last month, after S&P 500 ETFs gained more than 5% since 2026 began, raising concern over stretched US equity valuations.
The report says the only previous instances were around the 1999 dot-com bubble, 2007 financial crisis and 2020 flash crash, each followed within a year by steep market falls.
It cautions that timing is uncertain and a crash is not guaranteed, arguing long-term investors could still profit by staying invested despite elevated valuations.
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