[Coin World] U.S. stocks are rising against the trend in 2025, just a hair's breadth from their historical highs. However, the higher the S&P 500 index goes, the stronger the concerns about its valuation multiples becoming inflated. Data shows that the index has a price-to-earnings ratio of 22 times based on expected profits for the next 12 months, which is 35% higher than the long-term average. Among the 20 such valuation metrics tracked by Bank of America strategists, the index shows excessive valuations on each metric. Kevin Gordon, a senior investment strategist at a financial institution, stated: "The current level of the market is sustainable, but we cannot have high confidence on the question of 'from here on out'. The optimistic expectations for profits in the second half may be too high, combined with multiples nearing cyclical highs, which will require earnings to exceed expectations." Besides profit growth, the strategist also indicated that significant rate cuts by The Federal Reserve (FED) will narrow the gap between the index's fundamentals and market prices.