S&P 500 Hits Historic Valuation, Warning Signs Emerge

Reported 3 days ago

The S&P 500 has reached a forward price-to-earnings ratio of 22.3, marking only the third time since 1985 that it has exceeded this threshold, a sign that recalls the dot-com bubble and the pandemic market peaks, both of which led to significant declines afterward. While valuations are currently high, Goldman Sachs predicts a modest 3% annual return for the index over the next decade, suggesting that investors should be cautious and consider accumulating cash in anticipation of a market correction.

Source: YAHOO

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