What a Rare Market Pattern Signals for Investors

Key Points The S&P 500’s Shiller CAPE ratio has climbed above a level rarely seen in history. Forward earnings estimates are rising even as long-term valuation measures remain stretched. Vanguard’s latest forecasts point to lower U.S. equity returns over the next decade. 10 stocks we like better than S&P 500 Index › The S&P 500 (SNPINDEX: ^GSPC) is trading at one of its highest valuations on record based on the Shiller cyclically adjusted price-to-earnings (CAPE) ratio, which stood at 41.7 on Sept. 10. Readings above 40 have occurred only once before, during the dot-com boom of 1999-2000. Image source: Getty Images. Missed Nvidia in 2009? This Rare Signal Is Flashing Again.