The Stock Market Is Repeating a Pattern Seen Only Once Since 1871. Here's What History Says Comes Next.

The S&P 500 and Nasdaq have reached all-time highs, but the CAPE ratio has surpassed 40 for only the second time since 1871, echoing the dot-com bubble of 1999. While this valuation metric historically signals overvaluation and precedes bear markets, history shows that long-term investors who stay invested in quality companies recover and thrive despite short-term volatility.