As 26-Year Stock Market Milestone Approaches, History Points to What Comes Next
The S&P 500's valuation hasn't been this high since 2000.
Overview
The last time the Shiller P/E ratio, also known as the cyclically adjusted price-to-earnings ratio, or CAPE ratio, was this high, Bill Clinton was president. In July 2026, the Shiller CAPE ratio hit 40.91, the highest since August 2000, almost 26 years ago.
For perspective, the median CAPE ratio since 2000 is roughly 27. Over the past 50 years, it's been around 20, and the long-term average dating back to the 1870s is 17. The highest it ever reached was 44.19 in November of 1999.
Details
So, we are clearly in unusual times, but why does this matter, and what happens next?
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.