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Story summary
- Mark Hulbert, market analyst, says the U.S. stock market and gold are approaching peak valuation levels.
- The S&P 500 forward price-to-earnings ratio is 22.5, about 20% above its 10-year average of 18.8.
- The higher valuation is linked to the concentration of the index in rapidly growing technology companies.
- The current stage of artificial intelligence development suggests such elevated P/E ratios might be expected.
