Goldman Weighs In On ‘Unsustainable Excesses’ In US Stocks
If you ask Goldman, stocks probably aren't a "bubble" -- or at least not at the aggregate index level and not on a relative basis.
As I patiently explained in "Here's The Reality Of 'Bubbles," stocks can never be a "bubble" because "bubble" is a noun that refers to a thin sphere of liquid enclosing air or some other type of gas. If you're not the type for lengthy, philosophical, semantic debates, I penned a shorter version on Friday which simply pointed out that,
The problem with "bubble" as a
This is one occasion in my less than storied life where a 20% correction would seem to be a development welcomed by many.
Runaway train……downhill, why stop at 20%. Starting to think the national conscienceness is aching for a real Depression.
If you look at S&P P/E chart it may make a case for things actually are different since 1990. Sit in cash 70% of the time? Has anything else changed since 1990?
Hartnett, “those who want to stay rich are acting like those who want to get rich.” Although all those who pontificate about being rich have started crying out in unison that this is not right. It is right now. Till it isn’t.
“the aggregate stock market index trades at below-average historical valuation.” I would like to see more charts like this one that show equity valuation relative to interest rate levels. With interest rates at all time lows i expect equities to be at all time highs.
Sometimes you have to take a punch, but timing is critical.