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The S&P 500 Shiller Cyclically Adjusted Price-to-Earnings ratio, or CAPE ratio, has remained above 40 since May, a level last sustained for an entire year during the dot-com bubble of 1999.
This valuation metric is currently signaling that the market is historically expensive, even as both the S&P 500 and the Nasdaq Composite recently set new all-time highs.
Investors are growing concerned that current valuations resemble the early 2000s bubble.
The CAPE ratio tracks market valuation over time, with higher figures indicating a greater likelihood that the broader market is overvalued.
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