📍The valuation of American securities has surpassed the dot-com peak.



📌 The P/S ratio of the S&P 500 has just reached 3.23 times, a record high in history – surpassing even the dot-com bubble in 2000. Meanwhile, the forward P/E is also anchored at 22.5 times, much higher than the long-term average of ~16.8 times.

📌 The market heat comes from the concentration of massive capitalization: The top 10 account for nearly 40% of the S&P 500, with 9 out of 10 companies having a market capitalization of >$1T.

📌 If we consider the weighted balance of stocks in the S&P 500, the P/S is actually only about 1.76 times, slightly higher than the long-term average of 1.43. This indicates that the "bubble" is mainly inflated by a few big players.

📌 For 4 years, Mag-7 has continuously pulled US Stocks, causing America to witness an unprecedented valuation cycle, where the "value" of the market is tightly held in the hands of a few big tech stocks.
DOT0.29%
AMP1.01%
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