According to a recent analysis by Bank of America, the S&P 500 is deemed one of the most overvalued markets in history, being expensive on 19 out of 20 metrics. The Shiller Price to Earnings ratio (CAPE) is reported to be over 100% above historical averages, raising concerns about a potential stock market bubble. Despite this, the S&P 500 has experienced a significant rally, gaining over 40% since last October, with a realized volatility of approximately 12, resulting in one of the greatest risk-adjusted yearly returns in U.S. stock market history. Goldman Sachs noted that the S&P 500 forward price-to-earnings (P/E) ratio is currently at 21.8x, while the trailing P/E is at 26.58x, marking the third highest valuations in modern history, following the peaks of 1999/2000 and 2021. Historical data indicates that at a CAPE of around 36x, the forward 10-year return for the S&P 500 has been negative 84% of the time, highlighting potential risks in the current market environment.