Mark Cassidy, director of financial stability at the Central Bank, noted that the 10 largest US companies have accounted for 45 per cent of gains of the wider S&P 500 since April. Photograph: James Forde
Central Bank officials warned on Monday that there could be a knock-on effect to the Irish economy in the event of a stock market shock, as valuations of US technology stocks show signs of being “stretched”.
A valuation model developed by Nobel laureate Robert Shiller puts stocks in the US S&P 500 index as trading at about 40 times earnings, adjusted for inflation – the second-highest level ever, trailing only the dot-com peak in 2000.
Mark Cassidy, director of financial stability at the Central Bank, noted th
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