AI-driven gains push market valuations to record highs

From the start of 2023 through late September 2026, the S&P 500 has compounded at roughly 21% a year, while the Nasdaq Composite and Dow Jones Industrial Average have gained 29% and 12% per year, respectively.

The gains have largely been driven by artificial intelligence, with major companies delivering earnings that lift the indexes. The Buffett Indicator currently sits at a record high of 236%, and the CAPE ratio is close to 41, a level seen only in the final days of the dot‑com bubble.

Investors who focus on businesses with durable moats—pricing power, network effects, and diversified cash flow—can benefit from the current valuation expansion. The Motley Fool Stock Advisor team has identified ten stocks that could produce monster returns in the coming years, offering a distinct advantage over the S&P 500.

Read the full story at finance.yahoo.com.