Is the Vanguard S&P 500 ETF Still a Buy?
The U.S. stock market has been on a remarkable bull run since October 2022, with the popular Vanguard S&P 500 ETF (NYSEMKT: VOO) gaining an eye-popping 53.6% over this period. This long-winded rally, initially sparked by attractive valuations following the Federal Reserve's interest-rate hikes, has been further fueled by generally positive earnings and the transformative potential of the artificial intelligence (AI) revolution.
However, some skeptics are raising concerns about the sustainability of this aging bull market. The S&P 500's cyclically adjusted price-to-earnings ratio (CAPE ratio) currently stands at approximately 34, more than double its historical average of around 16. This elevated valuation has led some investors to question whether the market is overheated and due for a correction.
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Source Fool.com
