The Stock Market Is Repeating a Pattern Not Seen in Decades: History Says This Will Come Next
The AI boom looks increasingly similar to the dot-com bubble.
Overview
During the past 100 years, the S&P 500 has returned an average of 10% annually. However, during the past three years, the market has soared by 72% -- doubling the typical expected annual growth rate because of optimism surrounding the generative artificial intelligence (AI) megatrend.
If history is anything to go by, this period of elevated growth won't last forever. In fact, there is a real possibility that stock market returns could slow or even swing negative during the coming years. Let's dig deeper to find out what might happen next for the major indexes.
Details
The current generative AI boom has some interesting similarities with the dot-com bubble, which occurred in the late 1990s and saw the S&P 500 index peak at an all-time intraday high of 1,552.87 on March 24, 2000. This followed a return of 21% in 1999, 28.5% in 1998, and 33% in 1997.
Source
Originally published at www.fool.com.
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