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Investors participating in such environments often feel like entering a casino, aware of high risks but tempted by potential rewards. This scenario historically peaks before sharp downturns, often leading to dramatic corrections.
Is a Bubble Really Brewing?
Despite the hype, many experts argue that the current market is not in outright bubble territory. While some US stocks, particularly tech, have become expensive, there's a healthy skepticism surrounding AI-related valuations. Not all tech companies are assumed to be winners, and only those with solid fundamentals and promising growth prospects tend to receive higher multiples.