The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - The S &P 500, for example, has risen about 40  percent over the last two years. Several signs, however, suggest that the stock market has become overvalued. For example, the ratio of stock prices to corporate earnings (a measure of how expensive stocks are) is near historically high levels ( Figure  5 ).
https://lao.ca.gov/Publications/Report/5110