S&P 500 & Nasdaq Keep Climbing… but for How Long?
The bulls just keep charging. The S&P 500 notched its 11th all-time high of the year, breaking above 6,300 for the first time ever—its third 100-point milestone of 2025 and seventh in the past year.
Not to be outdone, the Nasdaq Composite crossed 21,000, having doubled in 5 years and quadrupled in 10.
💡 Tariff worries? Forgotten. Rate fears? Shrugged off. The rally feels unstoppable.
But here’s the twist…
📊 Priced for Perfection?
The surge has pushed valuations into the stratosphere:
S&P 500 P/E (peak earnings): Now at 26.5—the highest since 2000, and 54% above its long-term median.
CAPE Ratio: Nearing 38, a level seen only twice before in history—now higher than 98% of all readings.
So yes, the market is strong—but also vulnerable. With expectations sky-high, even a small disappointment could spark a sharp pullback.
🧠 Some Stats to Chew On…
📺 YouTube now commands 12.5% of all U.S. TV viewing—more than any traditional network.
💼 Wages have outpaced inflation for 26 straight months, reversing a record 25-month slump.
🎓 College tuition is up 700% since the 1980s, vs. a 199% rise in overall CPI.
🚗 Auto insurance rates? Up 94% in the last decade—well ahead of inflation.
🏠 Home affordability has hit historic lows: The income needed to buy a median home is now 56% higher than what the median household earns.
📌 Takeaway:
Yes, markets are euphoric. But when everyone’s priced for perfection… even good news might not be good enough.
Stay sharp.
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