The run-up in the stock market is not all it’s cracked up to be. Much of it is based on the strength of 7 mega-cap tech stocks (. GOOGL, AAPL, AMZN, META, MSFT, NVDA, TSLA) and the excited betting on when the Fed will lower interest rates.

In 2024 the stock market is looking the most overvalued since the dot-com craze of 2001. On October 4, 2002, the Nasdaq index fell 77% from its peak.

Many analyst are saying the dream of a soft landing for the economy is over and a recession is coming. Stocks fall an average of 36% during a recession.

stock-fall

Hedge fund billionaire says US debt ‘is a growing concern that cannot be overlooked’

Wall Street strategist who called dot-com crash says stocks are in a bubble driven by Fed

S&P 500 is ‘bizarrely overvalued’ and could crash 49% as recession sets in, elite strategist says

Elite investor Jeffrey Gundlach compares the AI boom in stocks to the dot-com bubble β€” and warns of economic pain