Is there a tech bubble?
The U.S. stock market has been on the rise, with the S&P 500 index up 24% in 2023, and the Magnificent Seven soaring 111% in the same period.
The performance continued this year, with Nvidia increasing more than 50% during the first two months of 2024.
These results have led some stock market observers such as Jeremy Grantham and Jeffrey Gundlach to declare that stocks are in a bubble and overvalued just as they were at the height of the dot-com bubble at the start of 2000.
What is a market bubble?
A stock market bubble is a type of economic bubble that takes when place when stock prices are driven above their value in relation to some system of stock valuation.
This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a "crash" or a "bubble burst."
Are we in a market bubble? Or a tech bubble?
Analysts appear to lean both ways, so what do you think?
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