U.S. Equity Giants’ Valuation Echoes Dot-Com Exuberance

(Bloomberg) -- The price-to-earnings ratio of the S&P 500 Index’s 10 largest stocks is trading near a level that marked the implosion of the dot-com bubble two decades ago. Elevated valuations combined with a potential rise in bond yields and risk of slowing growth make equities more vulnerable to corrections. And with the S&P 500 Index’s top 10 biggest companies comprising nearly a third of the gauge’s total weighting, any retreat in these market behemoths could fuel a dip in the entire market. 

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