History Says a Stock Market Sell-Off Is Coming Eventually. Here’s the Smartest ETF to Buy Right Now.
It’s been a very good time to invest in the stock market. The current bull market run is well underway, with the S&P 500 (SNPINDEX: ^GSPC) up 78%, the Nasdaq Composite (NASDAQINDEX: ^IXIC) surging 99%, and the Dow Jones Industrial Average (DJINDICES: ^DJI) rising 53% higher over the past three years.
Despite these impressive gains, there is at least one indicator that not everything is well. One particularly worrying sign is that the Shiller cyclically adjusted price-to-earnings (CAPE) ratio has risen very quickly, signaling that stocks are overvalued.
Here’s why it’s worth keeping an eye on the CAPE ratio and how you can prepare for market instability by focusing on a long-term investment strategy, like owning the Vanguard S&P 500 ETF (NYSEMKT: VOO).
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.