The S&P 500 is entering the fifth year of a bull market that began in October 2022 and has risen nearly 120%, driven by the AI boom, though breadth is narrow: over a quarter of its stocks are down 40% or more from their highs and nearly 60% trade below their 200-day moving average. The CAPE ratio sits above 40, its second-highest level ever; the only other times it exceeded 32 were before the 1929 crash (32.6) and at the dot-com peak (44.2), and both were followed by major corrections. Investors Michael Burry and Ray Dalio have warned that the AI bubble could burst. The author argues that selling to wait out a correction is usually a poor move, since 76% of the market's best days occurred in bear markets or the first two months of bull markets, and missing the 10 best days over 30 years could halve returns. He favors steady dollar-cost averaging into an index ETF such as VOO instead.
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Related tickers and likely impact
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/15/2026 | 771.79 |
| Change that session | +0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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