The last few years have proven that the stock market is incredibly resilient. Despite no shortage of headwinds -- from stubborn inflation to a slew of tariffs to the war in Iran -- the S&P 500 (SNPINDEX: ^GSPC) , Nasdaq Composite (NASDAQINDEX: ^IXIC) , and Dow Jones Industrial Average (DJINDICES: ^DJI) have all reached record highs after record highs.
If history has anything to say about it, however, this incredible bull run may be reaching a dangerous new threshold.
Stock valuations are soaring, and while that's not necessarily a bad thing, it can push the market into bubble territory. Right now, the S&P 500 is repeating a pattern last seen during the dot-com bubble in the early 2000s, and history suggests investors should start preparing for volatility.
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