S&P 500 Shiller CAPE Ratio nears 40, flashing rare warning signal
Updated
Updated · The Motley Fool · May 10
S&P 500 Shiller CAPE Ratio nears 40, flashing rare warning signal
7 articles · Updated · The Motley Fool · May 10
The valuation measure is far above its historical average of about 17 and has reached similar extremes only before the Great Depression and the dot-com bust.
The report says this does not guarantee an imminent crash or recession, but suggests US stocks are broadly expensive after months of record highs.
Investors are urged to stay selective and keep a long-term view, as some shares may still be undervalued despite elevated market-wide valuations.
Which overlooked global markets offer the best value while U.S. tech stocks soar?
If a major correction hits, will AI stocks prove more resilient than traditional companies?
With AI driving the market, are historical warnings of a crash now irrelevant?