Is the Stock Market Going to Crash? 153 Years of Valuation History Weighs In and Provides a Big Clue.

Since 2023 began, Wall Street has been firing on all cylinders. In this roughly 17.5-month stretch, we've watched the mature stock-driven Dow Jones Industrial Average (DJINDICES: ^DJI) gain 17%, the benchmark S&P 500 (SNPINDEX: ^GSPC) add 42%, and the growth-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) catapult higher by 69%. More importantly, all three indexes have achieved record-closing highs and firmly established themselves in bull markets.On paper, things have been going swimmingly for Wall Street. A majority of S&P 500 components are topping consensus profit expectations, and the U.S. economy has remained on track. Despite a few historically accurate predictive indicators calling for a U.S. recession in 2023, the economy continues to chug along.But history also tells us that the stock market rarely moves up in a straight line for any extended period. While hype surrounding artificial intelligence (AI) is, undeniably, giving stocks a boost, it doesn't remove the possibility of equities crashing back to Earth at some point in the future.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Zum vollständigen Artikel