The Stock Market Is Doing Something It Has Done Only 2 Times Since 1985, and History Is Clear About What Happens Next

The S&P 500 (SNPINDEX: ^GSPC) is widely regarded as the best gauge for the entire U.S. stock market. The index has returned 27% year to date in one of its strongest performances of the 21st century. But warning signs are starting to appear.In November, a Conference Board survey found that 56.4% of U.S. consumers expect the stock market to rise over the next year, the highest reading on record. That may sound like good news, but Morgan Stanley sees it as a contrarian indicator signaling irrational optimism at a time when valuations are stretched.Indeed, the S&P 500 recently attained a valuation only seen during two other periods since 1985, and the benchmark index eventually crashed after both incidents. Read on to learn more.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool