S&P 500 Valuations Near Dot-Com Levels as Nasdaq Stays in Correction

The S&P 500’s Shiller CAPE ratio has climbed above 40, approaching its dot-com-era peak, while the Nasdaq Composite remains in correction territory after a 10.6% decline from its record high. The CAPE ratio uses 10 years of inflation-adjusted earnings to measure valuation. It reached roughly 44 during the dot-com era, before the S&P 500 fell nearly 40% and the Nasdaq dropped nearly 80% over about three years. Market breadth has also weakened. More stocks have recently reached 52-week lows than highs, including on days when major indexes advanced. The pattern last occurred shortly before the dot-com bubble burst.

Source: TokenPost