Historical Patterns Suggest Potential Stock Market Downturn Ahead

Reported 19 days ago

The current stock market, celebrating its two-year bull run, has seen significant gains in major indexes, driven by factors like AI advancements and strong corporate earnings. However, historical patterns indicate that the S&P 500's high Shiller P/E ratio, recently reaching 38.87, has been a precursor to major market declines in the past. This pattern, observed just three times since 1871, including before the dot-com bubble burst and the 2008 financial crisis, raises concerns among investors about a potential downturn.

Source: YAHOO

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