It's possible for AI to be a massive industry over the long term, but "AI stocks" to be in a massive bubble over the short term.
WARNING
No matter what valuation metric you look at the S&P 500 is overvalued.
Meme-stocks are flying again, SPACs are being launched, and hype from AI changing the world is pushing stocks higher.
The market goes up more often than it goes down but it does not always go up.
Pullbacks after hype-driven rises can be swift and brutal.
Not saying to sell everything, but just remember valuation and fundamentals do matter and you need to be realistic with your expectations.
Legendary Investor Howard Marks just wrote a master class on value vs price and shared a reality check for the current valuation of the S&P500.
It's 100% free and every investor should read it. You can find the memo and all of Howard Marks's memos on Oaktree Capital's website for free.
I'll also be breaking down the memo and sharing takea...
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