The Stock Market Is Flashing a Warning Sign Rarely Seen in 145 Years. Here's What History Says Comes Next.
The CAPE ratio is near a level last seen during the dot-com bubble.
Overview
The stock market is rarely boring, but 2026 has seemed especially wild, if you ask me. After narrowly avoiding a correction to begin the year, the S&P 500 (SNPINDEX: ^GSPC) is up 20% from its low in March. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) both slipped into full correction territory -- meaning a decline of 20% or more -- but are now up 16% and 26%, respectively.
All three stock indexes are just a few percentage points off their all-time highs. That has some investors nervous.
Details
And now, an important stock market indicator has reached a level we've seen only once before -- during the dot-com bubble.
Source
Originally published at www.fool.com.