Daily Archives: Aug 8, 2017 at 08:13 am EST

Bubble Risk When The Bubble Doesn’t Burst

In February I considered if bubble risk for US stocks was elevated. My conclusion: Yes, it appeared that the market was unusually frothy, based on an econometric technique that takes a stab at quantifying the ebb and flow of irrational exuberance. As a sell signal, however, the analysis has been dead wrong this year. The S&P 500 is up more than 6% since that post appeared six months ago.
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