Shiller P/E ratio nears historic peak as markets rally

For the better part of the last four years, Wall Street’s bull market has been unstoppable, with the Dow Jones, S&P 500, and Nasdaq Composite all reaching new record highs since early June.

Investors are finding no shortage of reasons to be excited about equities, including the potential for a historic surge in the Shiller P/E Ratio, which has now approached 44.19, the all‑time high set in December 1999.

Historical precedent shows that when the Shiller P/E Ratio surpasses 30, the market often experiences a significant rally, and the current trend suggests a possible new peak. Analysts at Bespoke Investment Group and Crestmont Research have noted that bull markets typically last about 1,023 calendar days, and that all 107 rolling 20‑year periods since 1900 have produced positive average annual total returns.

Read the full story at finance.yahoo.com.