As the Stock Market Flashes a Warning Signal Seen Only Once Before, History Is Telling Investors to Do This Now.
The market is sending investors a clear signal last seen near the dot-com peak.
Overview
There's no doubt about it: We have entered one of the most expensive markets in Wall Street's history.
That's not a reason to panic or a signal to take cover, run for the hills, and start hoarding gold. It's the price investors are paying today to access the long-term gains that the stock market has historically delivered.
Details
We'll come back to that. First, a signal from the stock market: A traditionally reliable metric, the CAPE ratio, has reached its second-highest level in history, at about 41. The chart shows annual CAPE readings, highlighting today's valuation.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.