Today, the S&P 500’s cyclically adjusted price-to-earnings ratio (CAPE) is nearing historic highs, signaling market valuations may be in overheated territory. In December 2024, the S&P 500 CAPE ratio stood at 37.9—well above its long-term average of 17.6. Notably, it has only exceeded this level during the Dot-Com bubble and in 2021. This graphic from Picton Mahoney Asset Management shows the S&P 500 CAPE ratio since 1920. Source: Visual Capitalist https://lnkd.in/g2peEzgD
