S&P 500 Hits New Highs, Raising Chance of 1990s-Style Stock Surge and Bubble Risk
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S&P 500 recently hit record highs, raising possibility of 1990s-style "melt-up" in stocks (20% probability), per market veteran Ed Yardeni.
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Fed interest rate cuts, even amid solid economy, could fuel bubble in tech stocks.
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Eventual valuation bubble bursting likely when Fed forced to raise rates again due to high inflation.
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Tech sector valuations today almost half that of dot-com bubble peak in 2000.
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Yardeni's base case (60% probability) remains "Roaring 2020s" boom for several years aided by productivity surge keeping inflation tame.