Reported 1 day ago
According to Torsten Sløk, chief economist at Apollo Global Management, the S&P 500 may be in a bubble larger than that of the dot-com era due to significantly higher valuations of its top companies compared to the late 1990s. The top 10 firms are currently trading at a forward price-to-earnings ratio of approximately 25, indicating a potential bubble as investments surge in the wake of the recent AI boom. Strategies suggest that as the Federal Reserve potentially cuts rates, the market conditions for a bubble may become increasingly apparent.
Source: YAHOO