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Shiller PE Ratio Nears 40: Is a Crash Coming?

10/17/2025

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Story summary
  • Investors today face significant risks as the Shiller PE ratio nears 40.
  • historical data show similar peaks preceded major market crashes, including declines of over 80% during the Great Depression.
  • Investors should proceed cautiously, diversify portfolios, and monitor inflation, rates, and geopolitical uncertainties, as some analysts argue technology could justify valuations.