Part 2/10:
A thorough examination of the stock market data, particularly the inflation-adjusted S&P 500 index, reveals a concerning overextension relative to its long-term trend. This overextension is reminiscent of the conditions leading up to four of the largest market crashes in the past century. When the S&P 500 is adjusted for inflation, the market appears to be significantly overvalued, suggesting a potentially precarious situation for investors.