For the last three years, the stock market has been heavily influenced by one key theme: artificial intelligence (AI). The rise of AI has spawned an unprecedented level of demand in the technology sector in particular. However, adjacent industries including energy and infrastructure are also beginning to benefit from AI-driven tailwinds.
Against this backdrop, the S&P 500 posted a 70% gain throughout the AI revolution. As the stock market continues to soar, some investors are beginning to grow suspicious that we may be headed for a bubble-bursting event.
History suggests that a significant shift in stocks may be on the horizon. Let’s dig into the market’s recent fluctuations and index this data against longer-term trends. From there, investors should have a clearer idea of where to invest, given the market’s current elevated state.
This post originally appeared at The Motley Fool.