Equities hit record overvaluation; semiconductor stocks surge past dot-com bubble peak.

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According to the Q ratio, developed by James Tobin who won the Nobel prize for it, equities with a current Q ratio of 1.90 are overvalued by 156% to the long term mean (Q ratio 0.74) making it the first time to be overvalued by 3 std dev, the greatest amount ever.

2/2 pic.twitter.com/N4A05W1g4u

— AnilVohra1962 🇬🇧🇨🇦🇺🇸 (@AnilVohra1962) May 26, 2024

Semiconductor stocks relative to the S&P 500 are trading above the dot-com bubble peak.

Such an outperformance of Semis have never been seen before.

Year to date, $SOX is up by 25% versus 11% return of the S&P 500.

Nvidia alone is up a whopping 115%.

AI hype is so strong. pic.twitter.com/4nkeKSNW2r

— Global Markets Investor (@GlobalMktObserv) May 27, 2024

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