Possibility of winter stock market decline and Warren Buffett's low-price buying strategy
BRK-A Berkshire Hathaway Inc
$875654.62 +2.60%
View chart & analysis → - 1The S&P 500 Shiller CAPE ratio is approaching its highest level since the peak of the dot-com bubble in early 2000.
- 2During the 38 corrections of the S&P 500 since 1950, the index recovered by reaching new all-time highs in every instance.
- 3Since the 2008 financial crisis, the stock prices of Goldman Sachs, Johnson & Johnson, UnitedHealth Group, and Wells Fargo have risen more than fivefold.
So what's the key point?
The metric used to see how expensive stock prices are relative to earnings has become as high as it was during the dot-com bubble. However, looking at past cases, stock prices eventually rose again even after falling, leading to large profits.
Source The Motley Fool +1 · View original ↗
Today's 5 AI picks, all freeNothing hidden: past picks and how they did against the S&P 500.