All articles tagged with #cape ratio
Originally Published 12 days ago — by The Motley Fool
Warren Buffett's recent $184 billion net sales amid high market valuations and a historically expensive S&P 500 suggest a potential stock market decline in 2026, with historical data indicating possible drops of 4% on average and up to 30% over three years if current valuation levels persist.
Originally Published 2 months ago — by Seeking Alpha
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.
Originally Published 2 months ago — by Yahoo Finance
The article discusses two historically reliable indicators, the Buffett indicator and the Shiller CAPE ratio, which are currently at high levels suggesting the possibility of a stock market decline around 2026. Investors are advised to be prepared for potential downturns while maintaining a long-term focus.
Originally Published 3 months ago — by MarketWatch
Federal Reserve Chair Jerome Powell's comments on high stock valuations are supported by several metrics, including the CAPE ratio, Buffett indicator, and price-to-sales ratio, all of which are near or at record highs, suggesting stocks may be fairly valued or overvalued.
Originally Published 4 months ago — by The Motley Fool
The article warns that despite recent stock market highs driven by optimism and technological growth, historical patterns suggest that overvaluation, as indicated by the high CAPE ratio, and ongoing trade tensions with tariffs could lead to significant market declines, making current valuations a potential ticking time bomb for investors.
Originally Published 4 months ago — by Business Insider
Famed economist David Rosenberg warns that the current high stock valuations, with the Shiller CAPE ratio at its third-highest level ever, suggest negative returns ahead and indicate a price bubble, especially as economic indicators like slowing job growth and rising unemployment claims point to a potential downturn.