The Stock Market Just Did Something for the First Time Ever. History Says Investors Should Be Worried. But Could This Time Be Different?
Is a sky-high stock market valuation not the warning sign it's been in the past? Maybe.
Overview
Long-time investors may think they've seen it all. However, they witnessed something just a couple of weeks ago that had never happened before in U.S. stock market history. The S&P 500 (SNPINDEX:^GSPC) topped 7,750 for the first time. The widely followed index even briefly flirted with reaching the 7,800 mark. Although the S&P 500 has retreated slightly since then, it's still only about 2% below its all-time high.
Achieving this milestone is exciting. However, it could also be scary for many investors. Soaring valuations have accompanied the stock market's surge. History shows that investors should be worried when valuations become as frothy as they are now. But five words could be true that usually aren't: This time could be different.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
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