Market volatility concerns as S&P 500 valuation approaches historical highs
- 1As of the closing price on October 5, the S&P 500 recorded a Shiller P/E of 41.67.
- 2This level is close to the all-time high Shiller P/E of 44.19 recorded by the S&P 500 in December 1999.
- 3Current stock market valuations are approaching historical highs, which may signal a precursor to a crash, but long-term holdings of 20 years have always recorded positive returns.
So what's the key point?
The metric used to see how expensive S&P 500 index stock prices are relative to earnings has approached an all-time high. The market could shake significantly, but holding for 20 years has always resulted in profits.
Source The Motley Fool +1 · View original ↗
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