Reported 6 days ago
The stock market is currently experiencing significant gains, with major indexes reaching all-time highs, primarily driven by enthusiasm for the AI sector and economic expectations. However, historical analysis reveals that the S&P 500's Shiller P/E ratio has reached a level only seen three times in 153 years, which often precedes market corrections. Past occurrences show that when the Shiller P/E ratio exceeds certain thresholds, major declines in stock values typically follow. Despite this, long-term investors are reminded that while economic downturns are inevitable, they tend to be short-lived compared to prolonged periods of growth.
Source: YAHOO