The stock market has been going down lately! It's like a rollercoaster, sometimes up, sometimes down. Experts are using a special tool called the Shiller P/E Ratio to guess how far it might fall.
- The Shiller P/E Ratio looks at how much companies earn over 10 years.
- It's been used for over 150 years to predict market drops.
- Recently, the ratio showed the stock market might go down a lot.
Stock Market Index | Percentage Drop |
---|---|
Dow Jones | 6.9% |
S&P 500 | 8.6% |
Nasdaq | 13.4% |
Possible Future Drop | ~40% |
Remember, the stock market goes up and down. Nobody knows for sure what will happen. This is just a prediction based on a historical tool.