Here’s a chart of the Nasdaq PE ratio going back many years. Not good. Edit: decided to go with the S&P 500 to get you a feel for the market as a whole rather than isolating the Nasdaq. Same result. The entire market is over valued. Only surpassed during dot com and Great Depression. Note: 2002-2003 and 2009 were years with significant negative earnings artificially inflating the PE ratio.
I’m guessing people are betting on AI being able to boost profits a lot by reducing costs. It all depends on if the promises of AI come to fruition.
another AI winter looming?
If this is the case, then AI will boost profits for many sectors — not just tech. Thus big money will be rotated from the tech sector, which has inflated PE according to this chart, to the sectors with lower but growable PEs.
I'm curious why do people think there is no bubble? I've been hearing everything is going to crash since 2011 from my peers.
Unlike in the dotcom bubble, the big players are making money hand over fist
I don’t get the point of these posts. If people knew , the burst would never happen.
This chart gives me confidence that there's no bubble right now
What’s the y axis scale
Propaganda at its lamest.
IMO equities are overvalued right now due to speculation. There will be a correction, but there won’t be a “burst”. Fundamentals of big tech are strong.
It is going to burst tomorrow at 10:50. Better sell everything early in the morning.
Time zone? We need to get this right of we’re going to save ourselves.
If they make it harder for H1-b holders and there is a bubble, it shouldn’t affect us too much bc demand will still be high for tech workers?
Max 1 year and you shall see
That's what you said in 2015
^ proof?