The Stock Market Is Flashing a Warning Seen Just Once Before. History Says This Will Happen Next.
The stock market is more expensive today than it has been since the dot-com crash.
Overview
The U.S. stock market has delivered impressive returns in 2026 despite economic uncertainty surrounding persistent inflation and elevated energy prices tied to the Iran conflict. Year to date, the broad-based S&P 500 (SNPINDEX: ^GSPC) has added 13%.
Strong corporate financial results have been the driving force behind the stock market's double-digit gains. In fact, the current earnings represent the strongest fundamental environment outside of a post-recession recovery in more than 50 years, according to Wolfe Research.
Details
Nevertheless, the S&P 500 recently flashed a warning last seen during the dot-com crash, and it hints at big losses during the next two or three years. Here is what investors need to know.
Source
Originally published at www.fool.com.
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