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U.S. Stocks and Gold Near Peak Valuation Levels

12/6/2025

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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.