The S&P 500 just flashed a rare warning signal last seen in dot-com bubble. Crashproof your wealth now
View original at finance.yahoo.comThe S&P 500 just flashed a rare warning signal last seen in dot-com bubble. Crashproof your wealth now Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below…
Ce que nous avons tiré de cette source
The claims Via News extracted from this document. We point to the source; we don't replace it.
The S&P 500 CAPE ratio has recently climbed to roughly 41.33, a level reached only twice in the past century.
60% confidenceSince 1871, Shiller's CAPE ratio has exceeded 24 on only six occasions, with the first five occurring immediately prior to major market downturns.
60% confidenceHigher CAPE ratios have historically been associated with lower long-term stock market returns.
60% confidenceA market crash or recession is not necessarily imminent despite the elevated CAPE ratio.
60% confidenceThe CAPE ratio has not been a reliable indicator of when exactly a market downturn will begin.
60% confidenceA current CAPE ratio of 41.33 means investors are paying roughly $41.33 for every $1 of inflation-adjusted earnings generated over the previous 10 years.
60% confidenceThe CAPE ratio is best used as a risk management tool for assessing portfolio diversification rather than as a market-timing tool.
60% confidence