Updated
Updated · The New York Times · Aug 14
S&P 500 Nears Fourth Straight 10%-Plus Gain Year, Echoing 1990s Tech Boom
Updated
Updated · The New York Times · Aug 14

S&P 500 Nears Fourth Straight 10%-Plus Gain Year, Echoing 1990s Tech Boom

2 articles · Updated · The New York Times · Aug 14

Summary

  • The S&P 500 is on track in 2026 for a fourth consecutive year of double-digit gains, a feat achieved only three times since 1928.
  • That streak is drawing comparisons to the late 1990s, when the index rose more than 20% annually from 1995 through 1999 amid internet-driven exuberance; this rally is similarly tied to artificial-intelligence optimism.
  • The comparison also carries a warning: the 2000 crash and the 2007-09 financial crisis helped leave the S&P 500 in 2009 below its 1999 level after a 56.8% peak-to-trough drop during the crisis.
  • The article’s takeaway is not to abandon stocks but to avoid overconcentration—favoring low-cost index funds, diversification, and enough cash and bonds to withstand the downturns that follow long rallies.

Insights

With just five companies dominating the S&P 500, is your supposedly diversified index fund secretly a ticking time bomb?
If real profits are fueling today's AI boom, what hidden trigger could suddenly replicate the devastating 2000 dot-com crash?
Could the massive concentration in AI monopolies be a permanent economic shift rather than a traditional market bubble?