The Stock Market Just Made a Move That Warren Buffett Has Called "Playing With Fire." History Shows He's Right.
Yahoo Finance ·
Stocks have roared higher in recent years, and even after headwinds in the first quarter, the market continued along this positive path. Investors, recognizing the growth potential of artificial intelligence (AI), have piled into players in this industry. And they've set the pace during this bull market, now in its third year. AI is proving its ability to supercharge the revenue growth of companies involved in developing the technology -- from chip designers to cloud service providers. And this is just the beginning. When applied to real-world problems, as is being done more and more frequently, AI is making companies more efficient -- and that should boost earnings growth. All of this has driven tremendous gains in the three major indexes, with the tech-heavy Nasdaq Composite and the S&P 500 climbing 122% and 78%, respectively, over the past three calendar years. And just this week, the Dow Jones Industrial Average , which advanced 45% over the three years, closed above the level of 53,000 for the first time. This sounds exciting, but it's important to remain watchful of details that may offer us clues about what's next. And this is where investing expert Warren Buffett comes in. The stock market just made a move that Buffett once called "playing with fire." History shows that Buffett's words have been spot on. Let's zoom in for a closer look.
DYAX Investor Sentiment
Bullish (Long) 55% · Bearish (Short) 45%
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