Shiller CAPE at 42.56: Closing In on the Dot-Com Valuation PeakShiller PE Ratio by MonthMULTPL:SHILLER_PE_RATIO_MONTHDL_INVESTThe Shiller CAPE ratio reached 42.56, exceeding the extreme valuation threshold of 40 and approaching its all-time high of 44.19. Historically, the 20 and 30 zones have played a major pivotal role in valuations. The current value therefore suggests a highly stretched market and an increasingly asymmetric long-term risk/reward profile. Key scenarios: - Bullish: A confirmed break above 44.19 would signal a new phase of valuation expansion. - Neutral: Consolidation between 40 and 44.19 would keep the market expensive but resilient. - Bearish: A sustained move below 40 would weaken the current momentum and reopen the 30 zone as the primary target for normalization. The 20 zone would represent a much deeper valuation reset. The Shiller PE ratio is not a short-term market timing indicator. It is primarily a long-term valuation and risk indicator. I'd be interested in your thoughts in the comments. Laurent. ✅ DL INVEST | Community Leader