CAPE Ratio Warns of Market Downturn | Business and Finance News

The stock market’s been cruising up this year, but a historic warning light is flashing: the CAPE ratio is over 40 — a level only seen twice before, both times followed by major crashes. History says the S&P 500 hasn’t posted a positive three-year return after hitting this mark, and average drops have hit 30%. Yet, AI’s explosive growth could rewrite the script, fueling profits faster than the internet ever did. Wall Street remains bullish, forecasting a 22% S&P 500 surge next year — but with history and hype clashing, investors are staring at a risky crossroads. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/fe1c6f3f5455175f