The Stock Market Just Flashed a Warning Signal Seen Only a Handful of Times in 150 Years. Here's Where I'd Put Money Right Now.
The market hasn't fared well when the CAPE ratio is this high.
Overview
The Shiller CAPE ratio -- a metric that shows how expensive stocks are relative to a decade of earnings -- recently hit its second-highest level on record (41.5). The last time it was this high was in 1999, when it hit its record high of 44.2, right before the dot-com bubble burst. It also flashed warning signs in 1929 and 2022, foreshadowing bear markets in stocks.
Even though the market is flashing a warning sign, I'm not pulling back. Instead, I'm focusing on building more defensive holdings. Here's where I'm looking to put my money right now.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.