Commentary

Is the market overinflated? Maybe not.

Capex remains disciplined, earnings are robust, and valuations sit far below dot-com bubble extremes.

By: Denise Chisholm

Updated: 12/19/2025

Key Takeaways

Denise Chisholm approaches her research by looking at market data through a historian's lens. She believes historical patterns, when considered in the appropriate context, can help investors build conviction about future trends. This month, Denise explores how the market is likely not in an AI-driven bubble, as disciplined capital spending, strong earnings growth, and valuations far below dot-com extremes suggest a foundation of solid fundamentals.

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Is the market overinflated? Maybe not.

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Is the market overinflated? Maybe not.

Capex remains disciplined, earnings are robust, and valuations sit far below dot-com bubble extremes.

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