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The Stock Market Just Triggered 1 of its Rarest Signals on Record. Here's What History Says Will Happen Next.

The stock market is entering historically expensive territory. Here's what that means for investors.

The Stock Market Just Triggered 1 of its Rarest Signals on Record. Here's What History Says Will Happen Next.

Published August 16, 2026 · Category: Finance

Overview

The stock market is once again running with the bulls, with the S&P 500 (SNPINDEX: ^GSPC), Dow Jones Industrial Average (DJINDICES: ^DJI), and Nasdaq Composite (NASDAQINDEX: ^IXIC) all up double digits on the year.

If market sentiments remain positive, all three major indexes could end 2026 with their fourth consecutive year of double-digit annual returns. That hasn't happened since before the dot-com bubble popped in 2000.

Details

The year hasn't, however, been uniformly positive; several stocks have endured bouts of volatility, and much of the market's strength remains concentrated in a relatively small group of megacap companies. Indeed, beneath the surface of this year's growth, there are reasons to question how long this rally can reasonably continue, including a warning sign that today's market is historically expensive.

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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.