While Retail Investors Are Bullish on AI Stocks, Famed Investor Warren Buffett Retired Being Bearish. Will the Stock Market Crash or Rally in 2026?

There are other metrics that also point to the market being overvalued. The S&P 500's (SNPINDEX: ^GSPC) trailing price-to-sales (P/S) ratio recently hit an all-time level of 3.3 times, more than double its long-term median of 1.6 times. The Shiller P/E (CAPE) ratio, which measures the current value of the S&P 500 index and divides it by the index's 10-year inflation-adjusted earnings, is also at extreme levels, right around 40 times. That's only the second time this metric has climbed above 40, and the othe ...