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Story summary
- S&P 500 CAPE ratio rose to 41, far above the 17.3 average and the 32.5 level on Black Tuesday.
- Russ Mould says AI hype drives the valuation, that the 41 ratio exceeds the pre-1929 crash level, and warns a correction could produce a decade like the 1930s.
- He likens the AI frenzy to the 1990s internet boom and the 1920s electrification hype, both of which ended in busts.
