What A Market Crash Would Look Like

The stock market has ballooned to levels not seen since the dot-com bubble and market crash. 

Aside from where it stands today, it’s safe to say that only twice before have we seen the CAPE ratio top 30.  Both times were followed by a market crash. The bottom fell out of the market.  Before today it is at levels not seen since 1929.

The #CAPE ratio is a popular valuation measure applied to the S&P 500 (SPX).

CAPE stands for cyclically adjusted price-to-earnings.

It’s also known as the Shiller P/E ratio.  It was named for the Yale professor who created it. While the metric has its share of critics, it’s still considered a standard measurement of market valuation.

There IS a silver lining, no matter how far-fetched it might seem. Those who manage to keep powder dry by stashing cash could very well emerge as big winners.  This much like those savvy investors sifting through the wreckage after 1929.

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