# Bank of Japan expected to hike rates to 30-year high
[https://www.france24.com/en/live-news/20251216-bank-of-japan-expected-to-hike-rates-to-30-year-high](https://www.france24.com/en/live-news/20251216-bank-of-japan-expected-to-hike-rates-to-30-year-high)
# Bank of Japan expected to hike rates to 30-year high
[https://www.france24.com/en/live-news/20251216-bank-of-japan-expected-to-hike-rates-to-30-year-high](https://www.france24.com/en/live-news/20251216-bank-of-japan-expected-to-hike-rates-to-30-year-high)
If there's one thing no one should do, it's think that the AI trade is done for good. Maybe a continued pullback, maybe a broadening into other, non-Mag-7 companies in the space and ancillary spaces, but this thing is going to keep going.
Having lived through the dot com bubble, you could just use the word "internet" in place of "AI" and we would be having the same discussions we all had back then. Even if everyone suspected AI was bs (enormous number of people thought the internet would fizzle out quickly and were insanely vocal about it) there would still be months or, more likely, years of gains before the dump, which usually needs a catalyst.
AI is good for at least another year, and if ROI doesn't prove to be dog shit, the trade will persist even longer, as it'll move from creation to fine tuning.
[https://www.nasdaq.com/articles/stock-market-flashes-warning-seen-twice-40-years-and-federal-reserve-has-bad-news-about](https://www.nasdaq.com/articles/stock-market-flashes-warning-seen-twice-40-years-and-federal-reserve-has-bad-news-about)
The S&P 500 had a [forward price-to-earnings (PE) multiple](https://www.fool.com/terms/f/forward-pe/?utm_source=nasdaq&utm_medium=feed&utm_campaign=article&referring_guid=dafe4fc9-7264-4afe-bd4c-d9c947def768) of 22.4 as of Dec. 5, according to **FactSet Research**. That is above the five-year average of 20 and the 10-year average of 18.7. In fact, excluding the past year, the index has traded above 22 times forward earnings during only two periods in the past 40 years, and it declined sharply both times.
The first incident was the dot-com bubble. The S&P 500's forward P/E ratio topped 22 in the late 1990s and generally stayed there until the bubble burst in the early 2000s. The index eventually dropped 49%. The second incident was the COVID-19 pandemic. The S&P 500's forward P/E ratio topped 22 in 2020 and stayed there for about a year. The index eventually dropped 25%.
https://www.tickerhistory.com/p/the-dot-com-bubble-explained
yes they were responsible for the dotcom bubble bursting, but this time its different because btc is....