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CAPE reaches alarming 40.3, signaling potential stock market reckoning
business May 13, 2026, 2:00 AM
CAPE reaches alarming 40.3, signaling potential stock market reckoning
  • On May 11, 2026, the CAPE reached an unprecedented level of 40.3, raising concerns over future stock market performance.
  • Analysts note that despite ongoing inflation and stagnant GDP growth, big-cap stocks are achieving all-time highs, partly due to claimed strong corporate earnings from AI.
  • Historically, high CAPE levels have preceded prolonged market downturns, leading to skepticism about the sustainability of current stock valuations.
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