Motley Fool contributor Adria Cimino says a market crash may eventually occur, citing an S&P 500 Shiller CAPE ratio that, she writes, has reached a level seen only once before, during the dot-com bubble. She recommends holding quality stocks long term.
Cimino says the valuation does not imply an immediate or dot-com-scale crash: stocks could dip modestly, or a crash could come much later. She says the S&P 500 has recovered after every past decline, though recovery times varied. Microsoft shares bought just before the 2007–08 crisis fell 34% on paper but would have gained more than 1,300% if held through publication.
The writer says this does not mean holding every stock for more than two decades: five to 10 years may be enough in many cases, while shares in a struggling sector could need extra time. She says the approach depends on choosing quality companies with solid long-term prospects.
