This Stock Market Is the Second Most Expensive in 155 Years, Making This High-Yield ETF a Smart Investment for 2026
Stock Market Performance: The Dow Jones, S&P 500, and Nasdaq have seen significant year-to-date gains of 13% to 18% in 2025, but the market is now the second priciest in history, raising concerns for future investors.
Valuation Metrics: The S&P 500's Shiller P/E Ratio is currently at 39.59, significantly above its historical average, indicating potential for a market correction, as past instances of similar valuations have led to declines.
Investment Strategy: The Schwab U.S. Dividend Equity ETF is highlighted as a strong investment option for 2026, offering a high yield of approximately 3.8% and low management fees, making it attractive for income-seeking investors.
Historical Context: The article emphasizes that while dividend-paying stocks have historically outperformed non-payers, the current market conditions suggest caution, as premium valuations are often unsustainable over time.
Trade with 70% Backtested Accuracy
Analyst Views on MRK
About MRK
About the author
MERCK CLOSES IN ON $6BN BIOTECH ACQUISITION TO ENHANCE CANCER DRUG PORTFOLIO - FT
- Merck's Acquisition: Merck is set to acquire a biotechnology company for approximately $6 billion to enhance its cancer drug pipeline.
- Strategic Focus: This deal reflects Merck's commitment to expanding its portfolio in oncology and strengthening its position in the competitive cancer treatment market.
Terns Pharmaceuticals Stock Rises 14.1% in Premarket Trading Following FT Report on Merck's $6 Billion Acquisition Plans
- Pharmaceutical Market Update: Terns Pharmaceuticals shares have increased by 14.1% in pre-market trading following recent financial reports.
- Merck Acquisition News: Merck is nearing a $6 billion acquisition, which is influencing market movements and investor interest.
SLS vs. TERN: Which Pharmaceutical Stock Offers Greater Potential as Merck Plans $6B Investment in Cancer Ahead of Keytruda Patent Expiration?
Leukemia Therapies Advancements: SLS and TERN are making progress in leukemia therapies, with TERN-701 targeting chronic myeloid leukemia (CML) and SLS focusing on a maintenance immunotherapy for acute myeloid leukemia (AML), both expected to have Phase 3 readouts by 2026.
Market Sentiment Shift: Retail sentiment has shifted, with TERN moving to a bullish outlook while SLS has adopted a bearish stance, reflecting differing investor confidence in their respective stocks.
Financial Opportunities and Strategies: Merck anticipates a $70 billion commercial opportunity beyond Keytruda, as it prepares for the expected loss of exclusivity in 2028, while also expanding its newer Keytruda QLEX formulation.
Stock Performance and Analyst Ratings: SLS stocks have shown a significant upside potential, with a consensus rating of 'Strong Buy', while TERN's stock has also gained traction, reflecting a broader positive sentiment in the oncology sector.
Merck Nears $6 Billion Acquisition of Terns Pharmaceuticals
- Acquisition Progress: Merck & Co. is nearing an approximately $6 billion all-cash deal to acquire US biotech firm Terns Pharmaceuticals, aiming to bolster its drug pipeline ahead of the patent expiration of cancer treatment Keytruda.
- Positive Market Reaction: Following the news, Terns Pharmaceuticals' shares rose about 10% in after-hours trading, reflecting optimistic market sentiment and indicating investor confidence in its chronic myeloid leukemia treatment potential.
- Strategic Positioning: Merck CEO Rob Davis is spearheading a diversification strategy to enhance the company's competitiveness ahead of Keytruda's patent expiration in 2028, demonstrating a strong commitment to future drug development.
- Market Capitalization: As of Tuesday's close, Terns had a market capitalization of $5.4 billion, and Merck's acquisition intentions not only aim to enhance its drug portfolio but also potentially lay the groundwork for future growth.
MERCK AND TERNS IN FINAL STAGES OF DISCUSSIONS, DEAL POSSIBLE SOON - FT
- Negotiations Update: Talks between Merck and Terna are currently taking place at an advanced stage.
- Potential Agreement: A deal between the two companies could be reached in the coming days.
MERCK'S CASH OFFER IS PROJECTED TO VALUATE TERNS AT ABOUT $6 BILLION - FT
- Merck's All-Cash Deal: Merck is expected to finalize an all-cash deal valued at approximately $6 billion.
- Valuation Expectations: The deal is anticipated to significantly enhance Merck's market valuation.
MERCK CLOSES IN ON $6BN BIOTECH ACQUISITION TO ENHANCE CANCER DRUG PORTFOLIO - FT
- Merck's Acquisition: Merck is set to acquire a biotechnology company for approximately $6 billion to enhance its cancer drug pipeline.
- Strategic Focus: This deal reflects Merck's commitment to expanding its portfolio in oncology and strengthening its position in the competitive cancer treatment market.
Terns Pharmaceuticals Stock Rises 14.1% in Premarket Trading Following FT Report on Merck's $6 Billion Acquisition Plans
- Pharmaceutical Market Update: Terns Pharmaceuticals shares have increased by 14.1% in pre-market trading following recent financial reports.
- Merck Acquisition News: Merck is nearing a $6 billion acquisition, which is influencing market movements and investor interest.
SLS vs. TERN: Which Pharmaceutical Stock Offers Greater Potential as Merck Plans $6B Investment in Cancer Ahead of Keytruda Patent Expiration?
Leukemia Therapies Advancements: SLS and TERN are making progress in leukemia therapies, with TERN-701 targeting chronic myeloid leukemia (CML) and SLS focusing on a maintenance immunotherapy for acute myeloid leukemia (AML), both expected to have Phase 3 readouts by 2026.
Market Sentiment Shift: Retail sentiment has shifted, with TERN moving to a bullish outlook while SLS has adopted a bearish stance, reflecting differing investor confidence in their respective stocks.
Financial Opportunities and Strategies: Merck anticipates a $70 billion commercial opportunity beyond Keytruda, as it prepares for the expected loss of exclusivity in 2028, while also expanding its newer Keytruda QLEX formulation.
Stock Performance and Analyst Ratings: SLS stocks have shown a significant upside potential, with a consensus rating of 'Strong Buy', while TERN's stock has also gained traction, reflecting a broader positive sentiment in the oncology sector.
Merck Nears $6 Billion Acquisition of Terns Pharmaceuticals
- Acquisition Progress: Merck & Co. is nearing an approximately $6 billion all-cash deal to acquire US biotech firm Terns Pharmaceuticals, aiming to bolster its drug pipeline ahead of the patent expiration of cancer treatment Keytruda.
- Positive Market Reaction: Following the news, Terns Pharmaceuticals' shares rose about 10% in after-hours trading, reflecting optimistic market sentiment and indicating investor confidence in its chronic myeloid leukemia treatment potential.
- Strategic Positioning: Merck CEO Rob Davis is spearheading a diversification strategy to enhance the company's competitiveness ahead of Keytruda's patent expiration in 2028, demonstrating a strong commitment to future drug development.
- Market Capitalization: As of Tuesday's close, Terns had a market capitalization of $5.4 billion, and Merck's acquisition intentions not only aim to enhance its drug portfolio but also potentially lay the groundwork for future growth.
MERCK AND TERNS IN FINAL STAGES OF DISCUSSIONS, DEAL POSSIBLE SOON - FT
- Negotiations Update: Talks between Merck and Terna are currently taking place at an advanced stage.
- Potential Agreement: A deal between the two companies could be reached in the coming days.
MERCK'S CASH OFFER IS PROJECTED TO VALUATE TERNS AT ABOUT $6 BILLION - FT
- Merck's All-Cash Deal: Merck is expected to finalize an all-cash deal valued at approximately $6 billion.
- Valuation Expectations: The deal is anticipated to significantly enhance Merck's market valuation.
