What 7 Key Market Indicators Are Telling Investors Right Now

Morningstar · Amy C. Arnott, CFA · 2026-10-27 13:11 UTC

U.S. equity valuations have retreated from their recent highs, but all 7 major market indicators remain above their long-term averages.

US equity valuations have retreated from their recent highs, but all 7 major market indicators remain above their long-term averages.

One of my favorite pieces of research is the quarterly Morningstar Markets Observer, which offers a wealth of information from a big-picture perspective. Particularly interesting is the report’s “Market Thermometer” chart, which shows seven key metrics and where each one stands relative to its range over the past 20 years.

I like this chart because it packs in so much information; even without reading all the details, you can get a quick picture of where major asset-class prices stand. Overall, the picture looks less alarming than it did earlier this year. All seven assets we measured are still trading above average compared with their historical ranges over the past two decades.

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