Economic Situation & strategy
October 30, 2025

Stock markets are soaring: When will the hangover follow the euphoria?

Article by Carsten Klude

Many investors are now sounding the alarm bells: stock market valuations at or near historical highs, coupled with mysterious and opaque money flows in the AI ​​sector, are fueling fears of a major crash. But one thing should not be forgotten: valuation metrics are poor market timing indicators. What is expensive can become even more expensive, and what is cheap can become even cheaper.

The crucial question is: are the high valuations based on fantasy or on facts?