We Are Witnessing the Stock Market Do Something for Only the 3rd Time in 156 Years, and History Suggests This Will Come Next

The S&P 500 has grown 21% annually over the past four years, more than double its 100-year average. The CAPE ratio has reached nearly 41, a level seen only twice before (1929 and 1999), suggesting potential overvaluation. While AI-driven gains resemble the dot-com bubble, unprofitable frontier AI companies like OpenAI face sustainability challenges. Rising interest rates and competition from cheaper Chinese AI models could trigger a market correction.