S&P 500 valuation reaches levels seen just before the dot-com bubble
- 1The S&P 500 Shiller CAPE Ratio has recorded a level of over 40x.
- 2The S&P 500 Shiller CAPE Ratio reached an all-time high of approximately 44x during the dot-com bubble collapse.
- 3During the dot-com bubble, the S&P 500 index fell by nearly 40% and the Nasdaq Composite fell by nearly 80%.
So what's the key point?
The metric used to see how expensive stock prices are compared to earnings has exceeded 40x. This is a similar level to what was seen just before the bubble burst in the past, so caution is needed.
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.