Historically high PE ratio of 22.3, a level only seen twice since 1985, during the dot-com bubble and the Covid-19 pandemic; here's what investors should take note of
US stock market is currently at a point that its investors are basking in glory at some of the most amazing returns showcased through the bull run in the past two years. As of now, the US stock market has recorded a historically high PE ratio, something that has only been seen twice in the past few decades, as per reports.
Is the US stock market close to making another history?
It looks like the PE ratio in recent times has now touched 22.3, which is a level that was last seen during the time when the dot-com bubble occurred, as well as the time of the Covid-19 pandemic. Both these phases are not very memorable for the US stock market, which is the reason why market experts are also advising investors to take not of the issue, and put their money into the stock market wisely.
With Donald Trump coming to power in January, there are also chances that his arrival may bring in a stock market crash, with some his economic plans being reportedly inflationary in nature. Donald Trump is currently standing at such an economical juncture, that his tariffs, which he has planned on imposing, could bring in inflation into the US economy, and the stock markets may have to face a wrath of this action.
FAQs:
Is S&P 500 a stock index? Yes, the S&P 500 is a very US stock market index which analyzes the performance of 500 of the biggest companies listed on exchanges in the US.
Which is one of the most followed stock indices? S&P 500 is one of the most popular stock index in the US, and has a solid traffic of financial inflow and
