Stock Market Warning Signal Seen Only 5 Times Since 1871 Points to Serious Downside Risk
Is now a good time to invest in stocks? Or is the stock market overheated, overpriced, and due for a big sell-off? The answer depends on your time horizon and overall financial goals. But some investors are worried about a widely respected valuation metric called the Shiller CAPE ratio. This metric keeps track of cyclically adjusted price-to-earnings for the S&P 500 index (^GSPC +0.02%).