A Once-in-a-Generation Market Warning Just Flashed. What History Says Happens Next.
According to one metric, the S&P 500 is the most expensive it's been since the dot-com bubble.
Overview
The S&P 500 (SNPINDEX: ^GSPC) is again on its way to a strong annual return. The artificial intelligence (AI) boom has helped the index climb a wall of worry that would likely have derailed many past bull markets. After all, the U.S. remains in conflict with Iran, consumers are struggling with high costs, and long-duration interest rates have been edging higher.
AI has sparked one of the largest corporate spending booms in history, with major tech companies investing an unfathomable amount of money in AI infrastructure and seeing strong returns. At the same time, AI investments are helping companies across industries reduce costs and improve efficiency, boosting corporate earnings.
Details
However, while the market remains in bull mode, a valuation red flag from the dot-com era has just resurfaced.
Source
Originally published at www.fool.com.