This Stock Market Warning Is Flashing Red for the 2nd Time in 145 Years. Here's What History Says Comes Next.
Here's why investors should respond with more selectivity, not panic.
Overview
This has been anything but a boring year for the stock market. After falling sharply earlier in the year, at recent prices, the Dow Jones Industrial Average is up 15% from its March low, while the S&P 500 (SNPINDEX: ^GSPC) is up 22%, and the tech-heavy Nasdaq Composite is up a whopping 30%.
But as exciting as the rally has been, there's a figure that should make you pause: the Shiller CAPE ratio. The important valuation metric has recently reached more than 40 -- a level only seen once before in modern stock market history.
Details
Here's what that means for investors.
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.