The biggest mistake investors make in every market rally

Core Viewpoint - The sustainability of the current market rally is questioned, with concerns about high price-to-earnings (PE) ratios and the lack of monetization in emerging technologies like AI [1][2]. Group 1: Market Conditions - The market rally may not be sustainable due to high PE ratios, which could indicate irrational exuberance similar to the late 1990s tech bubble [2]. - There is a significant delay in monetization of new technologies, with current investments primarily focused on research and development rather than generating revenue [2][4]. Group 2: Historical Context - The dot-com crash followed a period of high expectations without corresponding revenue, exemplified by companies like Pets.com, which had inflated valuations without viable business models [3]. - Historical patterns suggest that the transition to new technology often involves rocky monetization phases and potential pullbacks [4]. Group 3: Investor Behavior - Investors are advised to maintain a long-term perspective and avoid reacting to short-term market fluctuations, as many missed recovery opportunities by selling during panic [5]. - The current market environment is characterized by historically high PE ratios, indicating potential volatility until monetization occurs [6].