The Stock Market Has Been Reaching Record Highs. Here's What History Says Comes Next.

With major U.S. indexes posting record highs at an unusually fast pace, the article argues that history points to rising risk—especially as valuation stretches. It notes that since late 2022, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite have delivered double-digit gains for three straight years and are also up in 2026, potentially marking a first four-year streak since the dot-com era. The key metric discussed is the CAPE ratio, comparing the S&P 500’s price to average inflation-adjusted earnings over 10 years. The article says high CAPE readings have often preceded corrections, citing 1920s levels near 32.6 and 2000’s 44.2, and adds that today’s CAPE is back in the 40-plus range.