Wall Street's Ticking Time Bomb in 2026 Isn't Tariffs -- It's the Fed
Yahoo Finance·2026-01-04 09:41
Arguably, even more attention is being paid to President Trump's tariffs and their potential impact on the U.S. economy/stock market.Historical precedent makes clear that Shiller P/E multiples above 30 haven't been sustainable over the long term. While the CAPE Ratio isn't a timing tool, it does have a flawless track record of foreshadowing 20% or greater downturns in Wall Street's major stock indexes.For instance, the S&P 500's Shiller Price-to-Earnings (P/E) Ratio, also known as the cyclically adjusted P/ ...