The Stock Market May Be in Uncharted Territory Right Now, but History Still Has Good News for Investors
Tech stocks are shifting the landscape of the market, and investors should be paying attention.
Overview
For much of the past few years, major market indexes have experienced unprecedented growth. The S&P 500 (SNPINDEX: ^GSPC) is up nearly 77% over the past three years alone, as of this writing, while the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) has soared by around 94% over the same period.
Much of this growth can be attributed to large tech stocks. The AI boom has driven up valuations, and massive companies now account for a historically large share of the market -- even more so than during the dot-com bubble of the early 2000s.
Details
In many ways, the market is in uncharted territory. Many analysts argue that large stocks are still fairly priced despite record-breaking valuations, making it debatable whether this is a true bubble. That said, some investors are understandably nervous about investing when the S&P 500 is dominated by a handful of tech companies.
Source
Originally published at www.fool.com.