Daily Traders Edge

The Stock Market Is Overvalued, But It’s Not In A Bubble Yet – Mauldin Economics

April 27
14:18 2017


If you asked the man on the street, he would probably tell you there are five different bubbles going on right now.

There is some truth to that, but also some untruth to that.

The true part is that a lot of things are currently overvalued. I would say stocks are overvalued. Most people would agree. I would also say bonds are overvalued. Some people would agree. I would say corporate credit is overvalued, real estate in certain parts of the country is overvalued, and maybe a few other things.

But these are not bubbles.

So, What Is The Difference Between Something Being Overvalued And Something Being In A Bubble?

A bubble is a psychological phenomenon that occurs when an asset class becomes overvalued and is accompanied by an obsession or preoccupation with that asset class.

Continue Reading At Mauldin Economics

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