S&P 500 CAPE Hits 40.6, Highest Since 1999 Dot-Com Peak
Updated
Updated · The Motley Fool · Sep 16
S&P 500 CAPE Hits 40.6, Highest Since 1999 Dot-Com Peak
2 articles · Updated · The Motley Fool · Sep 16
Summary
40.6 — the S&P 500’s Shiller CAPE ratio has reached its second-highest level in 145 years, easing only slightly from 41.1 last month and far above its 17.4 long-run average.
That reading follows a sharp rebound in 2026: the S&P 500 is up 20% from its March low, while the Dow and Nasdaq have climbed 16% and 26% from correction territory.
1999 is the only historical precedent for a higher CAPE; the prior record came three months before the dot-com bull market peaked and the S&P 500 later lost nearly half its value.
History still offers a less immediate warning than a crash call: from the March 2000 peak to Sept. 10, 2026, the S&P 500 gained about 397% and the Nasdaq more than fivefold.