Is a Stock Market Crash Imminent in 2026 Under President Donald Trump? 155 Years of History Weighs In.
Yahoo Finance·2026-01-17 11:26

Unlike the traditional P/E ratio, which takes into account trailing 12-month earnings per share (EPS) and can be tripped up by U.S. recessions, the Shiller P/E is based on average inflation-adjusted EPS over the previous 10 years. Examining a decade's worth of EPS history ensures this valuation tool doesn't lose its usefulness during economic downturns.Arguably, no historical trend speaks louder than the S&P 500's Shiller Price-to-Earnings (P/E) Ratio, which is also referred to as the cyclically adjusted P/ ...