The S&P 500's Shiller CAPE ratio has reached 42, the highest level since the dot-com bubble peak of 44, signaling potential market overvaluation. With 43% of fund managers believing AI stocks are in a bubble and tech stocks showing recent weakness, investors are warned to focus on fundamentally strong companies rather than hype-driven stocks to weather potential market corrections.
Axe note: The US market's record valuation signals caution for rand investors, urging focus on solid JSE stocks.