Stock Market Warning Signal Seen Only 5 Times Since 1871 Points to Serious Downside Risk

Stock Market Warning Signal Seen Only 5 Times Since 1871 Points to Serious Downside Risk

The Shiller CAPE ratio deserves respect, but don't let it scare you away from the stock market.

The stock market could be entering bubble territory

As company valuations climb, many investors are growing increasingly concerned that the market is in a bubble. One metric that has been sounding the alarm in recent months is the S&P 500 Shiller Cyclically Adjusted Price-to-Earnings (CAPE) Ratio, which provides a snapshot of the market's...

S&P 500 Valuations Near Dot-Com Levels as Nasdaq Stays in Correction

The Shiller CAPE ratio has climbed above 40, while the Nasdaq Composite is down 10.6% from its peak and the S&P 500 has fallen 7.1%.

Stock Market Crash Warning as Valuations Echo the Dot-Com Bubble

Stock market crash fears are growing right now because the S&P 500 Shiller CAPE ratio has climbed back above 40x, its highest level since the dot-com bubble, when it peaked near 44x. That stretched S&P 500 valuation, along with the Nasdaq’s slide into a stock market correction, has turned into a...