Global equity markets are reaching valuations not seen in over two decades, with the technology sector particularly stretched. The 12-month forward price-to-earnings (P/E) ratio for the IT sector in the MSCI World index has climbed to 27 times earnings, placing it in the top 10% of the most expensive readings in 20 years. Growth stocks are trading near historically high valuations with a forward P/E of 26. The S&P 500's forward P/E ratio has risen to 22, the highest level in five years and comparable to valuations seen during the 2000 Dot-Com Bubble, excluding the 2020 market spike. The S&P 500 Information Technology sector's price relative to the broader S&P 500 has reached an all-time high of 0.83, doubling over the past eight years and surpassing the Dot-Com Bubble peak. US technology stocks relative to the S&P 500 hit a record ratio of 2.2 times in July, exceeding the 2000 bubble peak by more than two standard deviations from the historical average. Meanwhile, Q2 earnings per share (EPS) for the S&P 500 declined 4.1% quarter-over-quarter to $62.86 from $65.55, with net profit margins falling to 12.3% from 12.7%. Year-over-year EPS growth of 6.4% fell short of the initial 9.4% estimate. The Shiller P/E ratio now stands at 40, marking the second most expensive market valuation since 2000. Additionally, retail investors have increased their participation in the options market to over 20% for the first time ever, surpassing the peak seen during the 2021 meme stock frenzy by approximately 5 percentage points.