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Navigating Overvaluation in Modern Markets
This chapter explores the phenomenon of market concentration and the implications of high valuations in today’s investment landscape, particularly in the context of AI speculation. It emphasizes the importance of the Shiller Price Earnings (PE) ratio as a metric for assessing market value while drawing comparisons to historical market bubbles. The discussion provides insights into value investing strategies that can help investors identify opportunities amidst the challenges posed by overvaluation.