Analysis indicates that if the stock market faces a collapse, history shows that long-term investment strategies have never failed; currently, both the Buffett Indicator and the Shiller P/E ratio are at historical highs, suggesting the market may be overvalued.
An analysis article from Yahoo Finance points out that while major market indices are repeatedly hitting new highs, the Buffett Indicator has surged to a record-breaking over 232%, and the S&P 500 Shiller P/E ratio has reached 41, the second-highest point in history. These indicators suggest that the market might be overvalued, signaling a potential future correction. The article emphasizes that although short-term market movements are difficult to predict, historical data shows that all 20-year investments in the S&P 500 index since 1919 have yielded positive returns. Therefore, in market fluctuations, maintaining a long-term investment perspective and selecting quality companies are key strategies to navigate potential market downturns.
Source:Yahoo财经 · Source Link
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