The Meaning of US Stock Market Plunge and Market Correction
- 1The S&P 500 index fell 4.4% last Thursday.
- 2Market value evaporated by $3.7 trillion in the US market during a single trading day.
- 3The Shiller P/E ratio of 41 just before the market decline was higher than the Shiller P/E ratio of 32 before the 1929 crash.
So what's the key point?
The value of the US market disappeared by $3.7 trillion in just one day. The metric used to see how expensive stock prices are relative to earnings was higher than it was right before the previous crash.
Source The Motley Fool +1 · View original ↗
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