S&P 500 Index Rises as CAPE Ratio Surpasses 40
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View chart & analysis → - 1MarketWatch analysts observed that approximately 44% of S&P 500 stocks are in bear market territory.
- 2The CAPE ratio has crossed the 40 level for the second time in history.
- 3While the S&P 500 index is in a bull market, nearly half of the companies are facing individual difficulties.
So what's the key point?
The stock market is doing well, but nearly half of the companies are struggling. A metric that measures how expensive stock prices are relative to earnings has passed 40, so caution is needed.
Source The Motley Fool +1 · View original ↗
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