Bloomberg: S&P 500 yield is at dangerous level that could portend collapse
The S&P 500 Index is overvalued, Bloomberg warns. According to the agency, its real returns now match the levels seen in mid-2018 and early-2020. This is a dangerous signal - those periods were followed by major stock market crashes. According to the agency, investors should think about the real value of the index. By the results of Wednesday it rose again - the growth was 1.57%. At the same time its profitability, which is an important indicator, is now a little over 2%. The return on the U.S. stock market before the collapses of 1987, 2000 and 2008 was below 0%. Yields on the S&P 500 look better now, but they are nonetheless near levels that also preceded significant crashes in 2018 and 2020, with the former experiencing its most significant decline since the Great Depression in December and the latter's worst and fastest decline on record at the beginning of the latter.