Capital DailyCapital Daily
Markets · Investing · Business
Capital DailyCapital Daily
Finance

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.

Published June 22, 2026 · Category: Finance

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.

Details

S&P 500 Shiller CAPE Ratio Chart

Continue reading

Source

Originally published at www.fool.com.

Related Articles

CD
Capital Daily Newsroom

Capital Daily covers markets, crypto and commodities for Asia & the Middle East — tier-1 desk research, AI-driven analysis, institutional-grade data. Tip our newsroom: [email protected]

Email the newsroom →
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.