Will the Stock Market Crash in 2026? History Shows This Is the Smartest Way to Prepare.
The S&P 500 CAPE ratio is hovering near its highest reading since the dot-com crash.
Will the Stock Market Crash in 2026? History Shows This Is the Smartest Way to Prepare.
Overview
Despite some pressures from lingering inflation and shifting expectations around interest rates, the S&P 500 (SNPINDEX: ^GSPC) has nudged 9.6% higher so far this year, propelled by robust spending on artificial intelligence (AI) infrastructure and resilient earnings growth.
Amid this advance, the index's cyclically adjusted price-to-earnings (CAPE) ratio has reached its highest reading since the dot-com era. The CAPE ratio measures the S&P 500's valuation by dividing current prices by the average inflation-adjusted earnings over the past decade. It is important because elevated levels have historically forecast weaker future returns.
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Source
Originally published at www.fool.com.
