A “Fairly Highly Valued” Market: A Fed Chair Opines on Stocks, but should we listen?

Aswath Damodaran

Research

10 Pages

Musings on Markets assesses whether U.S. equities are richly priced and how much weight investors should give to central bank commentary on valuations. Market gains remain uneven, treasury yields have been broadly steady, and concentration in mega caps continues to shape index performance and perception.

Key Takeaways

Tech rebound leads: NASDAQ fell 21.3 percent by April 8 then finished nine months up 17.3 percent.
Concentration risk: Mag Seven now hold 30.35 percent of U.S. market cap and drove 52.4 percent of 2025 gains.
Resilient returns: S and P 500 rose 13.7 percent year to date while global equities gained 16.6 percent over nine months.
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