The S&P 500 Index is now near its all-time record high, fuelled by investor exuberance for artificial intelligence-themed stocks. Stock prices — and valuations — have continued to rally, despite high oil prices, which are driving up inflation, and longer-dated interest rates. Rising headline valuations are, in turn, fuelling concerns that stocks — and, even more so, tech stocks — are overvalued. Warnings of rising risk of a bubble burst have been growing louder. Therefore, the obvious question is, are stocks excessively valued and is the market poised for a big correction? (Read the sidebar, “The math behind stock valuations”, which uses a simple math equation to explain the directionality of the US equity market over the past few decades, including current market valuations.)
TheEdge25 May, 2026 09:00am - 5 days