This Market Indicator Is Sending a Warning Signal to Investors. Here's What History Says the S&P 500 Does Next.
Investors have been worried about the stock market's elevated valuation for years.
Overview
Although there's been some pullbacks along the way, the stock market has gone up and to the right since the start of 2023.
This year, the broader benchmark S&P 500 (SNPINDEX: ^GSPC) is up more than 12% (as of Sept. 9), and that's despite some pretty significant challenges, including the Iran war, which has led oil prices to soar. It also includes trade wars, elevated inflation, a potential interest rate hike, and concerns about artificial intelligence (AI).
Details
However, continued earnings growth, largely on the back of the AI infrastructure build-out, has helped the S&P 500 overcome these potential drags and deliver solid performance overall.
Source
Originally published at www.fool.com.