For a second consecutive year, the bulls are running wild on Wall Street. While most investors love a good bull market, it can make locating good deals more challenging.

As of the closing bell on April 10, the S&P 500's Shiller price-to-earnings (P/E) ratio (also known as the cyclically adjusted price-to-earnings ratio, or CAPE ratio) registered one of its highest readings dating back more than 150 years.

Unlike the traditional P/E ratio, which takes into account trailing-12-month earnings, the Shiller P/E ratio is based on average inflation-adjusted earnings from the last 10 years. In other words, it removes one-off events from the equation to provide an encompassing view of stock valuations. The Shiller P/E ratio's closing value of 34.26 on April 10 is double the average reading since 1871 and an ominous warning, based on history, that equities are due for a sizable pullback.

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Source Fool.com