Survey: 74% of Americans Call Record Stock Gains Unsustainable as CAPE Ratio Hits 41

Three in four Americans believe recent stock market gains are unsustainable and a correction may be looming, according to an Allianz Life survey published September 22. The S&P 500 is up about 13% this year, trading near record highs on AI enthusiasm and strong corporate earnings. The benchmark's cyclically adjusted price-to-earnings ratio stands at 41.07 — a level matched only during the 1999-2000 dot-com peak. Rising bond yields and borrowing costs add to investor unease. The survey of 1,005 adults, conducted in August, found 74% expect a correction, while just 27% are comfortable investing now. Investors also cite surging oil and gas prices amid the lengthening Iran war. Those fears pushed the Dow Jones and Nasdaq into correction territory in March, each falling 10% below recent highs. Analysts warn that widespread caution could become self-fulfilling, with investors pulling money out and triggering the correction they fear.