Research preview

The equity market today shows patterns that strongly resemble the environment preceding the early 2000s technology bubble burst. Understanding the financial theory behind market dynamics, portfolio risk, and valuation can help quantitative traders gauge whether a correction is imminent or if the rally is justified. The Historical Parallel In the months before the dot‑com collapse, valuations rose sharply while earnings growth lagged, and a wave of speculative buying pushed price‑to‑earnings ratios to historic highs. Today, similar headline‑driven enthusiasm is inflating a broad set of sectors, not just technology. Price momentum, low‑interest rates, and abundant liquidity create an environment where price appreciation can outpace fundamentals....