business
Warning: The S&P 500 Could Be on the Verge of Doing Something for the First Time in 155 Years, and It's Not Good News for Investors
Key takeaways
- The index s cyclically adjusted price-to-earnings (CAPE) ratio now hovers near a reading of 41 -- a territory that historically signals serious trouble ahead.
- The CAPE ratio captures something deeper than daily price movements: It reveals how much investors are willing to pay for every dollar of long-term earnings power.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
The index s cyclically adjusted price-to-earnings (CAPE) ratio now hovers near a reading of 41 -- a territory that historically signals serious trouble ahead.
The CAPE ratio captures something deeper than daily price movements: It reveals how much investors are willing to pay for every dollar of long-term earnings power. At its current level, the S&P 500 appears to be pricing in unprecedented levels of optimism while quietly laying the foundation for a painful reckoning.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Article preview — originally published by Yahoo Finance. Full story at the source.
Read full story on Yahoo Finance →
More top stories
Also covered by
Aggregated and edited by the Scoop newsroom. We surface news from Yahoo Finance alongside other reporting so you can compare coverage in one place.
Editorial policy · Corrections · About Scoop