If you’ve been watching U.S. stocks this year, you’ve probably felt like you were strapped into a rollercoaster ride. One month it’s tariff woes and recession fears, the next it’s AI euphoria pushing markets to new highs.
But lately, concerns about an overvalued market have been surfacing.
While strong corporate earnings have caused Wall Street bulls to shrug off these fears, overvaluation metrics tell a different story. The only other time the U.S. stock market was this overvalued was during the dot-com bubble.
Take a look at one of the most common measures of market valuation.
The Shiller cyclically adjusted price/earnings (CAPE) ratio — which divides prices by average inflation-adjusted earnings over the past decade — is hovering near 40, according to Morningstar. That’s higher than before the 1929 crash and just shy of its dot-com peak.
Some professional investors are concerned. During the Global Financial Leaders’ Investment Summit in Hong Kong, Goldman Sachs CEO David Solomon predicted a pullback in equity markets in the near future.
“It’s likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months,” he said.
For investors, it’s a good reminder to stick with steady, reliable names that can help smooth out the bumps when markets get choppy.
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Barrick Mining
As investors worry about an overheated market, many have flocked toward safe-haven assets like gold. The precious metal has emerged as the best-performing asset so far in 2025, with prices rising over 64% year-to-date. In comparison, the S&P 500 index has risen about 17% so far this year.
Riding this wave is Barrick Mining (TSX: ABX), which has turned into one of 2025’s breakout stars. The stock has risen 173% so far this year.
Barrick produced 829,000 ounces of gold in the third quarter of 2025, generating a record operating cash flow of $2.4 billion. The company’s free cash flow in the last quarter rose 274% quarter-over-quarter, to a record $1.5 billion.
Shareholders are feeling the payoff, too. Thanks to its impressive performance driven by increased gold sales, lower total cash costs per ounce and higher realized gold prices, Barrick Mining increased its quarterly dividends by 25%, to $0.125 per share, translating to a 1.7% yield. Plus, the company paid a $0.05 performance dividend in the last quarter.
The outlook gets even brighter from here. Barrick recently ended a dispute with the government of Mali over the use of the Loulo Gounkoto gold mine. If production restarts quickly, the mine could produce 670,000 ounces of gold as soon as 2026, which could result in $1.5 billion operating cash flow, according to analysts at BMO Capital Markets.
Enbridge
Enbridge (TSX: ENB), North America’s largest energy delivery company, has long been a go-to investment for Canadians who love steady dividend income.
And with electricity demand climbing in the U.S. — driven by tech giants racing to build out AI infrastructure — Enbridge is in a pretty sweet spot. The company’s scale and reach make it one of the few players capable of keeping up with the continent’s growing appetite for power.
“Energy demand continues to grow in North America and beyond. Throughout North America, we have an abundant supply of natural resources. Enbridge is the only company with a large incumbent footprint positioned to deliver gas, liquids and renewable power to customers across the continent and to new markets,” Enbridge CEO Greg Ebel said in the Q3 earnings report.
A key part of the appeal for shareholders remains the company’s stable dividend track record. The company has increased its dividend payouts for 30 consecutive years, and it currently offers a 5.9% yield.
The payout is expected to keep rising. Analysts forecast the annual dividend will grow to $4.17 per share by 2029.
