S&P 500 Shiller P/E Tops 42, Highest Since Dotcom Bubble

Macro

โดย The Motley Fool·

Summary · why it matters

The S&P 500's Shiller price-to-earnings ratio has climbed above 42, its highest level since the dotcom crash of the early 2000s, as the index trades around 7,800. The multiple, based on inflation-adjusted earnings over the past decade, exceeds the roughly 39 reading reached in 2021 before the market decline the following year. The surge has been driven by artificial intelligence stocks, drawing comparisons to the internet bubble, though optimists note that AI companies are generating significant growth unlike the profitless dotcom firms. The article cautions that even profitable tech giants like Microsoft, Apple, and Cisco lost more than half their value between 2000 and 2002, suggesting that elevated valuations can pressure any stock.