This Stock Market Warning Signal Has Only Fired 5 Times Since 1871. Here Are 2 Stocks That Survived Every Time.
If history repeats itself, these are the kinds of stocks you'll want to own.
Overview
Some things are so rare that they warrant attention when they occur. Investors are seeing that happen this year.
The Shiller S&P 500 (SNPINDEX: ^GSPC) CAPE (cyclically adjusted price-to-earnings) ratio, named for economist Robert Shiller, measures the S&P 500's price against inflation-adjusted earnings over a rolling 10-year period. This metric has topped 32 only five times since 1871. We're living through the fifth period right now.
Details
This elevated CAPE ratio has served as a warning signal in the past, with stock market crashes often following. However, two stocks stand out for surviving (and, ultimately, thriving) every time.
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.