This bull market in equities has a serious problem': Strategist warns a crucial AI-stock index is sending a potential bubble signal https://www.businessinsider.com/sto...e-signal-sox-semiconductor-index-sp500-2025-8
It does seem like all AI related stocks have become bubbles. Even stodgy old utilities have crazy P/E ratios. VST CEG NRG have crazy high valuations that don't make any sense. How can utilities be trading at 100+ P/Es? These valuations would make Fastow (Former CFO of Enron) jealous. Ironically NVDA looks cheap compared these supposed energy plays. Most SMH members look extremely overpriced like AMD who has no ability to catch up with nVidia or even Huawei. This bubble feels more like the Nifty Fifty rather than the Internet 1.0 bubble. The most ludicrous stock has to be PLTR. I will say this last leg seems to be primarily the large cap tech which usually means its on its last legs. The breadth is completely gone. Even ARKK is faltering. When the non-Financial press starts talking about bubbles then it will end.
My spidey sense has been-up lately. Largely due to seasonality and the appearance, to me at least, that everything AI is coming up Roses. Computing power; data storage; power and water, etc…I’ve dialed back exposure to equities in longer term portfolio’s. Hoarding cash.
Need a 80%+ year followed by another 80%+ year to get your taxi cab drivers attention: Nasdaq 100 returns: 1998: 85% 1999: 101% Then another 30% in the first few months of 2000. Some analysts are predicting a 'melt up' soon, not seeing it myself, but maybe the crowd does go mad again like 1998 & 1999.