The Stock Market Just Flashed a Warning Seen Only 5 Times Before. History Is Crystal Clear About What Happens Next (Hint: It's Not Good).
The S&P 500 Shiller CAPE ratio measures stock market valuations over a long-term horizon.
Overview
All three major U.S. stock indexes have climbed throughout 2026. As of Aug. 12, the S&P 500 (SNPINDEX: ^GSPC) has gained about 13%, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) and Dow Jones Industrial Average (DJINDICES: ^DJI) have advanced 14% and 12%, respectively.
All three indexes trade near record levels even as the macro backdrop remains unsettled by stubborn inflation, a leadership transition at the Federal Reserve, and ongoing tensions in the Middle East centered on the Iran war.
Details
Resilient corporate earnings -- particularly those tied to artificial intelligence (AI) developers and infrastructure spending -- have managed to satisfy investors, pushing valuations higher despite these headwinds.
Source
Originally published at www.fool.com.