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$SPDR S&P 500 ETF Trust(SPY)$

Regardless of interest rate hikes or cuts, and whether the US dollar strengthens or weakens, it seems that the S&P 500 never lacks upward momentum, and the market is filled with optimistic sentiment. After the rate cut, the price of long-term Treasury bonds continued to fall, with the 20-year Treasury rate rising to 4.2%. Compared to the bond market, capital is more willing to stay in the stock market.

The issue is that the S&P 500's net profit growth in the last two years has been less than 10%, while prices have soared by 60%, causing stock prices to move away from their actual value. Unless AI can bring significant profit growth in the short term, the risk will not be released.

The price-to-earnings ratio (PE) of the S&P 500 has approached 30 times, a level it has not reached since the pandemic and the internet bubble era.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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