✉news BusinessMarkets first seen 7 h ago, last 27 min ago, peak #24
S&P 500 valuation hits highest level since dot-com bubble
Original: The S&P 500's CAPE Ratio Just Hit Its Highest Level Since the Dot-Com Bubble. Here's What That's Historically Meant for Dividend Stocks.
The S&P 500's cyclically adjusted price-to-earnings ratio, known as the CAPE ratio, has climbed to its highest level since the dot-com bubble of the late 1990s. Analysts note that historically, such elevated valuations have been followed by weaker forward returns, with dividend-paying stocks tending to hold up better during subsequent market downturns. Investors are weighing whether high valuations warrant shifting toward dividend stocks as a defensive move.
Why now: Markets are trading near record highs and investors are worried about stretched valuations and what they signal for future returns.
Rank over time, top of the chart is #1. 4 snapshots from 7 h ago to 27 min ago.
Evidence
- The S&P 500's CAPE Ratio Just Hit Its Highest Level Since the Dot-Com Bubble. Here's What That's Historically Meant for Dividend Stocks. · The Motley Fool
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