The Stock Market Is Doing Something It Has Only Done 1 Time Since 2000 -- Should You Be Worried?
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By Stefon Walters – Dec 17, 2025 at 3:36PM ESTKey PointsThe S&P 500 is historically expensive.The last time the S&P 500 was this expensive was during the dot-com bubble.These 10 Stocks Could Mint the Next Wave of Millionaires ›SNPINDEX: ^GSPCS&P 500 IndexMarket Cap$0.0KToday's Changeangle-down(-1.16%) $78.83Current Price$6721.43Price as of December 17, 2025 at 4:13 PM ETLong-term investors shouldn't harp too much on current conditions.The Shiller price-to-earnings (P/E) ratio, or CAPE ratio, is a measure of how expensive the S&P 500 (^GSPC 1.16%) is. At the time of this writing, the Shiller P/E ratio is just over 40 -- a mark it has hit only once before -- in the thick of the dot-com bubble. Unfortunately, we know how the dot-com bubble played out, with the S&P 500 losing almost half its value. Given what happened last time we saw the S&P 500 this expensive, should investors be worried? The short answer is no. Image source: Getty Images. When I say you shouldn't be worried, it's not because the S&P 500 is immune from a correction, pullback, or bear market. Each of those has a very real chance of happening at virtually any time. That said, I don't think investors should be worried because, even after those events, the S&P 500 has shown its resilience and bounced back each time. Since the bottom of the dot-com bubble, it's up over 725%. Since the COVID-19 pandemic crash, it's up around 200%. ExpandSNPINDEX: ^GSPCS&P 500 IndexToday's Change(-1.16%) $-78.83Current Price$6721.43Key Data PointsDay's Range$6720.43 - $6812.2652wk Range$4835.04 - $6920.34Volume3.4B Admittedly, just because it has happened before doesn't mean it will happen again. Nothing is guaranteed in the stock market. However, the S&P 500 has a track record that warrants giving it the benefit of the doubt. This is especially true if time is on your side.About the AuthorStefon Walters is a contributing Motley Fool stock market analyst covering publicly traded companies across technology, consumer goods, and financials, as well as retirement planning. Stefon is a published author and has more than a decade of experience teaching financial literacy. He holds a bachelor’s degree in economics from the University of North Carolina at Chapel Hill.TMFStefonWRead NextDec 17, 2025 •By Anthony Di PizioThe Federal Reserve Just Delivered Incredible News for Stock Market InvestorsDec 16, 2025 •By Adam SpataccoThe Stock Market Just Flashed a Warning We Haven't Seen for More Than 20 Years. Here's What History Suggests Will Happen Next.Dec 16, 2025 •By Emma NewberyStock Market Today, Dec. 16: Energy Stocks Slide as Oil Drops to Multi-Year LowsDec 16, 2025 •By Jeremy BowmanUnemployment Hits 4.6% in the Latest Jobs Report.
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