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US stock market CAPE ratio signals unprecedented bubble, surpassing 1929 levels

By PulseAugur Editorial · [1 sources] ·

The current cyclically-adjusted P/E ratio (CAPE) for the S&P 500 is significantly higher than historical peaks, indicating a potential earnings and price bubble. If adjusted for an earnings bubble, the CAPE is nearly five standard deviations above the trend, surpassing any previous US historical mark. This situation draws parallels to the lead-up to the Great Depression, raising questions about when a market correction might occur. AI

RANK_REASON The item is an opinion piece discussing market valuation and historical parallels, not a direct announcement or event.

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US stock market CAPE ratio signals unprecedented bubble, surpassing 1929 levels

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COVERAGE [1]

  1. Mastodon — mastodon.social TIER_1 English(EN) · [email protected] ·

    "This time both earnings and prices are in a bubble" In 1929, the cyclically-adjusted P/E-ratio (CAPE) of the S&P 500 reached 32.6x according to Prof. Robert Sh

    "This time both earnings and prices are in a bubble" In 1929, the cyclically-adjusted P/E-ratio (CAPE) of the S&P 500 reached 32.6x according to Prof. Robert Shiller’s data. This was 1.8 standard deviations above trend at the time. ... If we correct for the earnings bubble, the c…

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