The market gauge · free & public

How exuberant is the market — right now.

One number, 0–100, for how expensive and fragile the whole US stock market is — built from a century of valuation, leverage, and credit data. Higher means new money faces worse long-term odds. It moves over months, not days.

Today's reading
78Elevated

Expensive and demanding — where 1929, 2021, and today sit. Be selective with new money.

0406080100
The record · since 1900

When the gauge runs hot, the decade ahead has paid poorly.

From attractivelevels (20–40), the S&P 500 returned +7.3%/yr real over the following ten years. From today's elevated reading, just +2.4%/yr — a positive real decade only 63% of the time.

Deep value020Attractive2040Fair4060Elevated6080Irrational8090Extreme9010019001920194019601980200020201929DepressionDot-comGFC low2021
Exuberance IndexS&P 500 real total return (log)Before 1997: valuation signals only.
Deep value
(020)
+11%/yr
97% of decades positive
Attractive
(2040)
+7.3%/yr
90% of decades positive
Fair
(4060)
+6.5%/yr
90% of decades positive
Elevated
(6080)
+2.4%/yr
63% of decades positive
today
Irrational
(8090)
no precedent
Extreme
(90100)
no precedent
What it measures

Two questions: how expensive, and how primed to break.

90
Valuation Stretch

How far prices sit above a century of fundamentals (CAPE + market-cap/GDP).

64
Rate-adjusted Valuation

Valuation after accounting for inflation and interest rates.

72
Equity Risk Premium

How much extra you're paid to own stocks over safe bonds.

83
Leverage & Speculation

How much borrowed money is riding on the market — how primed it is to force-sell.

66
Credit Complacency

Whether lenders are underpricing risk. Credit senses trouble before stocks.

How to read it

The six bands.

A high reading doesn't predict a crash tomorrow — it means the odds and risk-reward for new money have gotten worse.

020Deep value+11%/yrGenerational opportunity — the market is deeply cheap.
2040Attractive+7.3%/yrBelow-average valuations; patient capital is rewarded.
4060Fair+6.5%/yrAround the long-run normal; stock selection matters most.
6080Elevatedtoday+2.4%/yrExpensive and demanding — where 1929, 2021, and today sit. Be selective with new money.
8090Irrational exuberanceno recordThe record extreme — only the dot-com peak (82 in 2000) ever reached here. Maximum discipline.
90100Extreme bubbleno recordBeyond the entire 125-year record — no market has ever priced here. Capital preservation.

Built from Shiller (CAPE, Excess CAPE Yield), FRED (credit spreads, market-cap/GDP, rates) and FINRA (margin debt) — each signal scored by how far it sits from its own century of history, then blended. Deep history from bundled data; recent months reconstructed live.

The gauge is the backdrop. Infinity Thesis prices the companies inside it.