Summary
The US stock market has seen record highs, raising concerns among investors that it might be overpriced. The S&P 500 index has increased by more than 60% since early 2023, and many experts are worried about high valuations. Despite these fears, the market continues to rise, largely driven by strong earnings from major tech companies.
Key Facts
- The S&P 500 index has climbed over 60% since early 2023.
- Investors find US stocks expensive, with a high price-to-sales ratio.
- The S&P 500 is trading at more than 22 times its expected earnings.
- 90% of fund managers surveyed by Bank of America view US stocks as overvalued.
- Analysts have compared the current market to the 1990s dotcom bubble.
- The "Magnificent Seven" companies, including Apple and Microsoft, heavily influence the market.
- Despite fears, the S&P 500 hit five record highs in August.
