Investor Favors Active ETFs as Shiller P/E Hits 42.6 Near 1999 Peak
Updated
Updated · Yahoo Finance · Aug 19
Investor Favors Active ETFs as Shiller P/E Hits 42.6 Near 1999 Peak
1 articles · Updated · Yahoo Finance · Aug 19
Summary
Shiller P/E at 42.6 has pushed one investor to avoid broad S&P 500 buying now and prepare to add actively managed ETFs or select stocks in a downturn.
That stance rests on valuations near historic extremes: the S&P 500’s trailing P/E is 30, the highest since 2000, while the only higher Shiller reading was 44.2 in November 1999.
Past spikes in 1929, 1965, 1999 and 2021 were followed by corrections or bear markets, making stock selection more important even with indexes at fresh highs.
The investor argues a selloff would create better entry points, citing Microsoft’s rebound from $221 in 2022 to above $500 and Apple’s rise from about $137 to $305.