U.S. Stock Market Earnings Yield Near Century Lows

Since 2021, the earnings yield of the U.S. stock market has remained near century-long lows, based on the Shiller cyclically adjusted P/E ratio.

Notably, this marks the first time in modern market history that the indicator has stayed at such depressed levels for four consecutive years without a meaningful valuation correction.

The data underscores how U.S. equities remain historically expensive. At the same time, markets have repeatedly shown an ability to stay overvalued longer than investors expect, testing patience and capital discipline.