The U.S. stock market is currently experiencing elevated valuations, with the S&P 500 CAPE ratio reaching 37.0x, marking the third highest level in the history of modern capital markets. This valuation indicates that the market is among the most expensive in history, surpassing levels seen during the dot-com bubble and the 1920s prior to the Great Depression. Analysts have noted that U.S. equities are at their most expensive relative to government bonds since 2002. Billionaire investor Ray Dalio has expressed concerns about inflated stock prices, suggesting that future long-term returns may be disappointing.