Some parts of the market are looking pretty frothy.

It's been nearly three years since ChatGPT was launched, and stocks have been rallying at breakneck speed ever since.

Since the start of 2023, the S&P 500 ( ^GSPC 0.07% ) is up a whopping 73%, and even a brief plunge on tariff concerns hasn't been able to slow it down. Paced by the so-called Magnificent Seven, the broad market index has soared as AI-driven growth has fueled stocks like Nvidia , Meta , and Microsoft .

There is some evidence that a bubble could be forming in the S&P 500. After all, the index is unusually expensive at a price-to-earnings ratio of 28, and the CAPE ratio, which adjusts for inflation, is even more expensive. The so-called Buffett indicator, a ratio of the S&P 500's market cap to U.S. gross

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