The Stock Market Is Flashing a Warning Signal Seen Only Once Before. Here's What History Says Comes Next.

The S&P 500's Shiller CAPE ratio has reached levels not seen since the dot-com bubble, hovering above 40 since May 2026. While this doesn't guarantee a market collapse, it signals historically rare overvaluation. Investors are advised to focus on quality stocks with strong fundamentals and avoid overvalued companies, as history shows resilient companies recover and generate long-term gains despite market downturns.