Market Warning Signs: What History Tells Us About Current Risks
TL;DR Summary
The Cyclically Adjusted Price-to-Earnings (CAPE) ratio has risen to 40.5, nearing the all-time high of 44.1 before the Dot-Com Bubble burst, sparking concerns about overvaluation, but such readings are not reliable indicators of imminent market crashes as overvalued markets can remain so for extended periods.
- Chart Of The Day: How Worried Should You Really Be About This Chart? Seeking Alpha
- This indicator hasn’t flashed this red since the dot-com bubble : The Indicator from Planet Money NPR
- This Famous Method of Valuing Stocks Is Pointing Toward Some Rough Years Ahead - WSJ The Wall Street Journal
- Stock Markets Are Doing Something They've Only Done 4 Times Since 1870 -- Should You Be Worried? The Motley Fool
- The Stock Market Sounds an Alarm Seen Just 1 Time Before. History Says This Will Happen Next. Yahoo Finance
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