The Dow Jones Industrial Average has also enjoyed a boom adding 299 per cent to its value in a similar period setting alarm bells ringing as experts fear it is overvalued.
“The upshot is that computerised trading algorithms may pose one of the biggest threats to the markets today.”
However, concerns have been deflected by claims that the CAPE Ratio will naturally increase overtime as the US economy develops meaning the current stock values may be more justified than it first appears.
The news comes as a global economic advisor warned the lack of fear in markets means investors should be worried about another stock market craAnother market crash could be on the way and investors should fear the lack of caution in markets, Joachim Fels, from the financial investment firm Pimco warned.
“That means most investors are now pretty fully invested and that means they will want to get out if the markets start to correct -- exacerbating the downdraft.”
Mr Fels said that because of the continued expansion and strength of markets, it could signal a downturn is on the horizon.
That downturn seems to have arrived in full force today, as the Dow plunged more than 1100 points.
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