Something remarkable is going on in the equity market. Stock prices of companies with negative earnings have in recent months outperformed stock prices of companies with positive earnings,
When people get very excited, as they are today about artificial intelligence for example, is every experiment gets funded, every company gets funded, the good ideas and the bad ideas, Bezos said, pointing to companies getting billions of dollars of funding before they have a product. Investors have a hard time in the middle of this excitement distinguishing between the good ideas and the bad ideas.
The S&P 500 is wandering into uncharted territory as it looks to wander above the 6,500 mark going into the last four months of the year. It's never been so concentrated at the top, and with valuations on the rise (it may find itself closing in on a 30 times trailing price-to-earnings (P/E) multiple), some wonder if the SPDR S&P 500 ( NYSEARCA:SPY) is overdue for a correction.
