A valuation snapshot shows a divergence between the five largest U.S. stocks and the rest of the market: Goldman Sachs notes the top five trade at a price-to-earnings (PE) ratio of about 28—below the peak levels of the late-1990s tech bubble—while the remainder of the market is trading at PE multiples roughly in line with that bubble high. The author highlights that this split is driven by outsized valuations and earnings at the biggest tech firms.

Two important caveats are noted. First, PE ratios can normalize either through falling prices or rising earnings; a simple historical projection suggests PE could decline toward long-term norms over roughly a decade if earnings continue to grow. Second, free cash flow (FCF) has risen relative to accounting earnings for many firms—so P/FCF may not signal the same overvaluation as PE alone, since lower investment goods costs have boosted cash generation versus reported profits.

A long-term market-cap chart shows concentration in the top five is extreme today but not unprecedented: over decades, leaders change (Exxon is cited as a long-standing example). The commentary names #NVDA and #MSFT as appearing durable over a multi-year horizon, while #GOOGL faces questions about AI’s impact on search and #AAPL’s strong market position coexists with debate over its AI strategy. #FiatNews