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The S&P 500 is getting more expensive.
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Some investors believe that AI shares are a bubble.
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On the other hand, reserves of emerging technologies seem wrong to be expensive.
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10 shares we like more than Oklo ›
Almost three years have passed since the Chatgpt has started, and since then the reserves have been under preparation for Breakneck Speed.
From 2023 The beginning of the beginning S&P 500 (Snigex: ^GSPC) is 73 percent. The huge, and even a short rate of tariffs to dive into tariff problems, was unable to slow down. With the help of the so-called wonderful seven, the broad market index has grown as the growth of the AI-promoted has led to stocks such as NvidiaIs it Metaand Microsoft;
There are some evidence that the S&P 500 can form a bubble. After all, the arrow is unusually expensive when the price to force ratio is 28 and the CAPE ratio, which adjusts according to inflation, is even more expensive. The so -called “Buffett” indicator, the S&P 500 top limit ratio to the US common domestic product (GDP) is also the highest of all time.
However, the stock managing this tax is not as expensive as you may think. The diagram below contains five leading stocks.
Although none of these supplies are cheap, they usually correspond to the S&P 500, and all grow with double -digit numbers. NVIDIA, which is the most expensive from the group, is also fastest growing, so it is projected that her income will increase by 56%in the next quarter report.
Instead of high -capital stocks, it seems that bubble formation, emerging technology stocks, and reminiscent of previous stock market bubbles, seem to be formed in the stock market.
For example, at the Dot-Commation, the shavings of small internet companies became public with little or no income at all. This helped to speed up the bust in 2000.
During the pandemic era, we saw a similar phenomenon with special goals acquisition companies (Spac), which almost all crashed or went bankrupt, although they usually debuted successfully.
Other emerging technologies with low revenue, such as electric vehicles, usually went bankrupt or crashed in that era. Even a higher profile newcomers like Rivian and Lucid lost more than 90% of their value.
There are currently several rising sectors that show similar trends. For example, a modular nuclear reactor company Okay, hey (NYSE: Oklo) Has jumped 1200%in recent years, although the company has no revenue and does not expect to earn revenue at least until 2027. Currently, the Oklo market limit is almost $ 17 billion.