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Looking Back to 1880, Stocks Are Pricey. How They Keep Climbing.
Market Intelligence Analysis
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Why This Matters
The S&P 500's current Shiller CAPE ratio is at 40 times, indicating that stocks may be overvalued compared to historical averages, with the metric suggesting a more sustainable assessment of earnings power than the traditional price-to-earnings ratio.
Market Impact
Market impact analysis based on bearish sentiment with 70% confidence.
Sentiment
Bearish
AI Confidence
70%
Time Horizon
Short Term
Article Context
Note: This is a brief excerpt for context. Click below to read the full article on the original source.
The Shiller cyclically adjusted price-to-earnings (CAPE) ratio is a valuation measure that divides a stock’s current price by the average of the last 10 years’ inflation-adjusted earnings. This tactic is a better way to assess sustainable earnings power than the typical price-to-earnings ratio, since that only takes one year into account, he wrote in a Friday note. The S&P 500’s current Shiller CAPE ratio is at roughly 40 times.
Original article published by
Unknown
on January 16, 2026.
Analysis and insights provided by AnalystMarkets AI.
Analysis and insights provided by AnalystMarkets AI.