What History Reveals About a Potential Stock Market Crash in 2026

The S&P 500 has delivered strong gains over the past several years. Artificial intelligence remains a dominant investment theme, and stock valuations have climbed well above historical averages. Whenever markets reach these levels, discussions about an impending crash tend to follow -- and with good reason.

Indeed, history offers a useful perspective.

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One of the most widely followed valuation measures is the Shiller P/E CAPE ratio, which compares stock prices to average inflation-adjusted earnings over the previous 10 years.  Historically, elevated CAPE ratios have been associated with lower long-term returns and, in some cases, major market corrections. And today, the CAPE ratio remains elevated.

That doesn't mean a crash is imminent, though.

History shows that expensive markets can remain expensive for years. In fact, the CAPE ratio first moved above its long-term average in the mid-1990s, yet the market co

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/history-reveals-potential-stock-market-175500125.html)