The Stock Market Has Not Been This Expensive Since the Dot-com Bubble's Peak. History Says to Prepare for What Might Come Next.

The S&P 500's Shiller cyclically adjusted price-to-earnings (CAPE) ratio is at its second-highest level on record, exceeded only at the peak of the dot-com bubble. The valuation signal raises concern over elevated equity-market pricing and potential downside risk if earnings or investor sentiment weaken.