Market Optimism Defies Historical Valuations as S&P 500 Nears Record Highs
The S&P 500's Shiller P/E ratio approaches 40, marking a 130% premium to its 154-year average and positioning this as the third most expensive market in history. Previous peaks preceded major corrections—49% in 2000 and 25% in 2022—yet investor Optimism remains undeterred.
Despite these warning signs, selective opportunities persist. Three unnamed stocks are poised for portfolio inclusion, their potential undiminished by broader market froth. The Nasdaq's 78% collapse post-dot-com bubble serves as a stark reminder of cyclicality, but current momentum suggests near-term upside.