If stocks are this expensive, why isn’t anyone blinking? The S&P 500 is up nearly 30% since April, reaching record highs even as Wall Street digests mounting risks—from legal wrangling over tariffs to softening jobs data. By some indicators, the U.S. stock market is more richly valued than at any point in history—including the dot-com era—with the Buffett Indicator at 217% and multiples across the board near multi-decade extremes. This means the market is priced for perfection—leaving little room for disappointment.
- Magnificent Seven tech stocks now make up over 33% of S&P 500's value
- Over 66% of S&P 100 stocks have P/E ratios above 30; more than a quarter are above 50
- The market's risk/reward ratio is as thin as it gets
Despite bubble talk, most investors aren’t stampeding for the exits—yet. Momentum and echoes of record tech profits have kept optimism afloat, but all eyes are on any signs (like softer holiday spending) that could puncture these sky-high expectations.
