[quote=SK in CV]
I have to disagree about there being a bubble in the market right now. If there was, the market would be 20-25% higher than it is. By historic levels, it’s currently valued pretty average based on earnings. That doesn’t mean that we’re not in for a technical correction, but that’s substantially different than a bubble bursting. And even if there is a significant business slowdown, even in hindsight, that wouldn’t be indicative of a bubble. Current earnings are real.
[/quote]
Was there a bubble in the stock market based on earnings or valuations in 2007. I remember people saying the market wouldn’t be effected by sub prime because it wasn’t significantly overvalued. Of course we saw what happened. I don’t think the bubble is in stocks per say. It’s probably somewhere in the bond space, but when that bubble pops in the bond space it’s going to have devastating impacts on the stock market just like it has the previous 2 times. This stuff is interconnected, decoupling is a myth.
