Never a dull moment

As the saying goes, you only know it’s a bubble when it bursts. What we can say today is that valuations appear stretched in certain parts of the market, notably within the AI segment. At the same time, valuations alone remain a poor timing tool — and unlike during the Internet bubble, today’s tech leaders are supported by real and substantial earnings.

As the charts show, the current run-up in asset prices is remarkable, yet still far from the excesses seen in past market manias. This does not imply that investors should simply follow the crowd or buy markets indiscriminately. At ECP, we continue to favour a selective, patient, long-term approach with disciplined attention to entry valuations.

This week, markets will focus on US employment data and, of course, NVIDIA’s earnings on Wednesday. Never a dull moment.