The S&P 500 Is Flashing a Rare Historical Warning Signal Not Seen in 27 Years, and What It Could Mean for Investors
The market is looking frothy, but it's important to keep a cool head.
Overview
The stock market has been on a fantastic ride over the past several years. The S&P 500 (SNPINDEX: ^GSPC) is up 70%, the Dow Jones Industrial Average (DJINDICES: ^DJI) has risen 50%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) has gained an impressive 89% over the past three years. What's not to like, right?
The problem is that the S&P 500 is flashing a warning signal that it hasn't shown since the dot-com bubble burst. The artificial intelligence boom is causing many stock valuations to skyrocket, pushing them to heights never seen before. And some people are worried that it won't be long before the music stops and investors are left without a seat.
Details
Here's what you should know if you're trying to avoid such a scenario with your investments.
Source
Originally published at www.fool.com.