The current dividend yield of the S&P 500 is approaching its lowest level in a century.
The only other time it dropped to this level was during the internet bubble in 2000.
What does this simply mean?
It means that investors are paying exorbitant amounts for every dollar of corporate profits.
As the yield declines, valuations rise... and the margin of safety shrinks.
But does this mean that a crash is imminent?
Not necessarily.
Let's look at the situation objectively:
First: Markets can remain overvalued for long periods, especially when momentum is strong.
Second: The current situation is somewhat different from that of 2000.
Companies today - especially in the fields of technology and artificial intelligence - are generating real profits and strong cash flows, not just future promises.
Third: High valuations indicate something critical:
Any negative surprise in earnings or liquidity could lead to a sharp revaluation.
The danger does not lie in the high prices themselves...
But in the fragility of expectations.
When the market becomes historically expensive, it transitions from an easy gains phase to a phase that truly tests investment discipline.
The fundamental question today is not:
Is the market expensive?
But:
Is future growth strong enough to justify these prices?
Please follow up
$BTC #S&P500 #chamikametting
