The Stock Market Is Flashing a Rare Warning Signal. Here's How History Says Investors Should Prepare.

Key Points One pressing topic investors are thinking about these days is the S&P 500 index’s all-time high valuation. When the CAPE ratio was above 40 in the past, the market saw negative annualized returns over the next decade. Selling off their portfolios and waiting for a cheaper entry point is the worst thing that investors can do. 10 stocks we like better than S&P 500 Index › The S&P 500 index (SNPINDEX: ^GSPC) has been on a marvelous run. In the past decade, it has generated a total return of 321% (as of Sept. 18). Had you invested $10,000 in September 2016 in an exchange-traded fund (ETF) tracking the benchmark, you'd have $42,100 today. From a historical perspective, this is exceptional.