CAPE Ratio Warns of Market Risks | Business and Finance News

Stocks are surging to near-record highs despite global chaos—thanks mostly to booming AI-driven corporate earnings. But while investors cheer, economists are sounding the alarm: the CAPE ratio, a 150-year-old tool that averages earnings over ten years, is now at 41—more than double its historical average. That’s not just high; it’s historically dangerous, often preceding major crashes like the Great Depression, dot-com bust, and COVID crash. It doesn’t predict when, but it warns that volatility is coming. So what should you do? Diversify, hold cash, and focus on fundamentally strong companies. The market always recovers—but being ready for the storm matters more than ever. 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/cbf64db343bee31d