U.S. Fed Says Stock Valuations Near Dot-Com Bubble Levels

The Federal Reserve System (Fed) of the United States states that stock valuations in the U.S. are close to the levels of the dot-com bubble, according to Watcher Guru. One of the key indicators—the Shiller ratio—is currently around 40–42, compared to approximately 44 at the peak of the dot-com bubble in 1999–2000. This means that stocks (especially technology ones) are very expensive relative to the average earnings of companies over the past 10 years. High valuations are largely supported by the artificial intelligence boom.