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Bernardo de La Paz

(58,838 posts)
12. Nah. The original growth stocks were exploiting the New World (the Americas). Then
Wed Sep 24, 2025, 12:37 PM
Wednesday

Then it was steamship companies.
Then it was railroads.
Then it was electrification.
Then it was radio.
Then it was electronics & defence.
Then it was computers.
Then it was the internet.
Now it is AI mania.

All of those had bubbles and over-valuation periods and crashes of varying degrees.

The standard PE ratio charts are volatile and hard to extract advantage from. The alarming thing about the Shiller PE ratio chart is that it seems more rational and correlated to key market events, especially the 1929-1932 crash and the dot-com bubble. It is now above the 1929 levels and almost breaking the 1999-2000 level. The latter is not some ancient history.

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