The big news in the financial sector these days is, of course, the stock market. With year to date returns already over 15% (and counting), many out there are jumping in and proclaiming that the stock market is in a bubble and proclaiming that the bubble will burst.
I’m not buying it.
Or selling it, I guess would be the right term 🙂
Many of those who think we’re in a bubble use some combination of the following arguments to state their case:
- The big run in the stock market has taken all opportunity away
- Unemployment is not falling fast enough
- Corporate profits are leveling off
- Europe and Japan are in a recession
- Our mounting national debt
Here’s my take on each of these.