As Stock Market Warning Signs Pile Up, Here's What History Says Comes Next

Key Points Based on metrics like the CAPE ratio and Buffett indicator, stocks are trading at historically high valuations. In addition, stocks generally perform poorly during Fed rate-tightening cycles. 10 stocks we like better than S&P 500 Index › The stock market appears to be on its way to another strong year, with the S&P 500 (SNPINDEX: ^GSPC) once again up by double-digit percentages. However, warning signs of a potential market pullback have been growing, including the S&P 500 hitting rarely seen valuation levels and the Federal Reserve starting to raise interest rates. Let's look at what history says about situations like this and whether there is reason to believe that history will repeat itself or if this time will be different.