All articles tagged with #shiller pe ratio
Originally Published 2 months ago — by NPR
The Shiller PE Ratio has reached its highest level since 1999, reminiscent of the dot-com bubble peak, raising concerns about whether current investment trends, especially in AI, could signal an impending market correction.
Originally Published 2 months ago — by The Motley Fool
The article highlights that the current stock market is the second-priciest in 154 years, with valuations historically signaling an impending correction. Despite short-term risks, long-term data shows that market downturns often present buying opportunities, as extended periods of positive returns have persisted through various crises. Investors are advised to remain optimistic and view corrections as opportunities for growth.
Originally Published 7 months ago — by The Motley Fool
The stock market is in a rare and historically significant high valuation territory, with the Shiller P/E ratio exceeding 36, a level historically associated with major downturns. Despite recent volatility and corrections, history suggests that long-term investors should remain optimistic, as market cycles of corrections and recoveries are normal and typically short-lived.
Originally Published 1 year ago — by The Motley Fool
The current bull market on Wall Street, marked by significant gains in major indices like the Dow Jones, S&P 500, and Nasdaq, is facing historical warning signs. The S&P 500's Shiller P/E ratio has reached levels only seen twice since 1871, both of which preceded major market downturns. While this suggests a potential pullback, history also shows that recessions are typically short-lived and followed by longer periods of economic expansion, offering a positive long-term outlook for investors.
Originally Published 1 year ago — by The Motley Fool
President-Elect Donald Trump is set to inherit a historically expensive stock market, with the S&P 500's Shiller P/E ratio and the Buffett Indicator both at high levels, suggesting potential for a market correction. Despite these challenges, historical data shows that economic expansions typically last longer than recessions, offering a silver lining for investors. The S&P 500 has also shown strong average annual returns under unified Republican leadership, providing some optimism for the future.
Originally Published 1 year ago — by The Motley Fool
The stock market is experiencing a rare event, with the S&P 500's Shiller P/E ratio reaching 38.18, a level seen only three times in 153 years. Historically, such high valuations have preceded significant market downturns, as seen during the dot-com bubble and in 2022. While this suggests a potential correction, long-term investors are reminded that economic expansions typically outlast recessions, emphasizing the importance of patience and perspective in investing.
Originally Published 1 year ago — by The Motley Fool
Warren Buffett's Berkshire Hathaway has been net-selling stocks for eight consecutive quarters, totaling $166.22 billion, signaling a potential warning to Wall Street. This selling spree, including significant reductions in Apple and Bank of America holdings, suggests Buffett finds current market valuations high, as indicated by the elevated Shiller P/E ratio. Despite this, Buffett's long-term optimism in the U.S. economy remains, with Berkshire holding a record $325.2 billion in cash, ready to capitalize on future market dislocations.