The Buffett Indicator Is Hitting a Level Seen Only 3 Times in the Past 60 Years. History Says What Happens Next Won't Be Good.

By most measures, the U.S. stock market is expensive right now. That shouldn't come as a surprise.The S&P 500 (SNPINDEX: ^GSPC) trades at around 31 times earnings, a level reached during just a few periods since the late 1800s. The Shiller CAPE Ratio, which measures average inflation-adjusted earnings from the prior 10 years, just hit 40. The only other time it's hit that mark in the last 150 years was during the heights of the tech bubble.Another popular signal is the Buffett Indicator. Given that the guy who created it is considered one of the most successful investors ever, Wall Street tends to pay attention to it.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool