Is It Really Safe to Invest in the S&P 500 Right Now? History Offers a Clear Answer.

The S&P 500 and stocks, in general, are near record valuations.

Historically, such frothy valuations have led to steep sell-offs.

However, investing in the S&P 500 has paid off over the long run.

We're seeing the investing adage "stocks climb a wall of worry" play out before our eyes. The S&P 500 (SNPINDEX: ^GSPC) is near its all-time high. However, consumer sentiment is near a record low. Inflation is rising. The odds are high that the Fed will be forced to raise rates over the next few months.

Is it really safe to invest in the S&P 500 right now? History offers a clear answer.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

The S&P 500 Shiller CAPE (cyclically adjusted price-to-earnings) ratio is one of the best market valuation metrics. This ratio currently stands at 41.4, according to YCharts. The last time the S&P 500 Shiller CAPE ratio was higher was in 2000.

Investors who know their history probably remember what happened 26 years ago. The dot-com bubble burst, with the S&P 500 eventually sinking by nearly 50%.