The Stock Market Is Triggering a Warning That Warren Buffett Calls "Playing With Fire." Here's What History Says Comes Next.
History says now is the time for investors to start preparing for volatility.
Overview
Over the past three years alone, the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) have surged by around 80% and 97%, respectively, as of this writing. But all of that growth makes this one of the most expensive markets in decades, and that's not necessarily good news for investors.
Concerns around an artificial intelligence (AI) bubble are also on the rise, and some investors are drawing parallels to the dot-com bubble from the early 2000s. One of Warren Buffett's dot-com-era warnings is more relevant than ever, and history suggests it's time to brace for volatility.
Image source: The Motley Fool.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.