“It is better to be different this time”

• The AI Officism leads the S&P 500 to records to records, transcending the Dot-Com levels.

• High assessments reflect the profits of the profits driven by artificial intelligence.

• Although the level of the ratio is the transformation of the head, it does not require the shares in a bubble.

The bulls in the stock market often ignore the power of Amnesty International to convert the economy comparisons with the point of point a quarter of a century ago. Real profits actually appear, unlike the first days of the internet mutation – so He is Different this time, thinking goes.

But Michael Hartnett Bank of America strategy has a message to these investors: “It is better that it is different this time.”

Hartnett, who has often expressed his doubts about the market race over the past few years, has participated in a chart that highlights a head that highlights the optimism of investors about the impact of artificial intelligence. It shows the rate of S&P 500 to a book, which measures the total maximum market for the indicator components compared to its total assets minus obligations.

The evaluation scale is a height of the record 5.3, topped by the level of 5.1 in March 2000, at the height of the Dot-Com bubble.

Other classic evaluation measures show market butter for date. For example, Hartnett also shared a scheme that shows the price ratio to the profits from the S&P 500 for 12 months. With the exception of August 2020, it is at the highest level since the Dot-Com era.

And the rate of price to the modified profits that were modified in Schiller, which measures current prices against the average profits for 10 years, is at similar levels with 1929, 2000 and 2021.

High reviews reflect high expectations for future profits. Sometimes, these expectations turn very high, the prices are correct, but they do not require the bubble scenario. To date, many artificial intelligence companies have been constantly overcome by profit expectations, indicating that optimism can be justified.

The assessments are also better predictions of the average long -term returns of performance in the short term, and the views of Wall Street around where the market goes in the coming months. Although there are calls for caution, many strategists continue to raise the targets of the S&P 500 prices at the end of the year.

Earlier this week, Rick wheelsBlackrock’s chief investment official in Blackrock said that the market is “the best investment environment ever” thanks to factors such as strong stock demand, price cuts on the horizon, and recent reinforcements in productivity growth and profit growth.

If the market begins to relax, Hartnett said he sees bonds and non -American shares to benefit from it. Examples of money that provides exposure to these deals include Ishares Core US Agregate Bond ETF (AGR) and Vangard FTSE All-World EX-UTF (Veu).

Read the original article on Business Insider