The S&P 500 (SNPINDEX:^GSPC) and the Nasdaq Composite (NASDAQINDEX:^IXIC) have advanced 13% and 14%, respectively, year to date. The driving force behind those double-digit gains has been strong earnings growth, particularly among technology companies involved in the artificial intelligence infrastructure build-out.
However, by one valuation measure, the stock market is repeating a pattern last seen during the dot-com bubble. Is the AI boom destined to end in a catastrophic market crash? Of course, no one can predict the future, but here's what investors should know.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
The S&P 500 recorded a cyclically adjusted price-to-earnings (CAPE) ratio of 41.1 in August. The index's CAPE ratio has now exceeded 40 in five consecutive months, something that has only happened once before: during the dot-com bubble in 2000.
#NVIDIA #market #ratio
However, by one valuation measure, the stock market is repeating a pattern last seen during the dot-com bubble. Is the AI boom destined to end in a catastrophic market crash? Of course, no one can predict the future, but here's what investors should know.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
The S&P 500 recorded a cyclically adjusted price-to-earnings (CAPE) ratio of 41.1 in August. The index's CAPE ratio has now exceeded 40 in five consecutive months, something that has only happened once before: during the dot-com bubble in 2000.
#NVIDIA #market #ratio
4 days ago
