The 1987 Black Monday crash saw the Dow Jones plummet 22.6% in a single day, equivalent to an 11,000-point drop today. Current market conditions show eerie parallels to the pre-crash environment of 1987, raising concerns about potential market vulnerability. The concentration of value in AI-focused tech giants adds new risk dimensions to today’s market structure.
about Black Monday 1987: Could 11,000-Point Drop Happen Today?Robert Shiller
0 posts last weekBargain Stocks to Consider for Investment in 2025
In a market characterized by high valuations, two bargain stocks stand out for 2025: Micron and Dollar General. Micron, a memory-chip manufacturer, is benefiting from a surge in data center revenue, trading at a low forward P/E of 16, while Dollar General, despite recent challenges, offers a P/E of 12 and a 3% dividend yield, with a turnaround plan aimed at improving profitability. Both stocks present attractive investment opportunities amid current market conditions.
about Bargain Stocks to Consider for Investment in 2025Historic Highs in Stock Market Valuations Raise Investor Concerns
Current stock market valuations have reached historic highs, with the Warren Buffett Indicator at 200 and the Shiller PE ratio matching levels seen only during the dot-com bubble and pre-Great Depression. Investors are advised to maintain stock exposure while diversifying into alternative investments to mitigate risks associated with these elevated valuations.
about Historic Highs in Stock Market Valuations Raise Investor ConcernsS&P 500 Valuation Signals Potential Market Correction Ahead
The S&P 500 has surged over 20% for two consecutive years, a rare occurrence last seen in 1997-1998, which historically led to a 19% gain in the following year. However, the index’s current CAPE ratio of 37.9 indicates a historically expensive valuation, suggesting a potential decline ahead, as seen during previous peaks in the late 1990s and 2021. Investors are advised to be cautious, slow their stock purchases, and prepare for inevitable market corrections, which have historically provided buying opportunities.
about S&P 500 Valuation Signals Potential Market Correction Ahead