Rekenthaler Report

Many Bubbles, Few Troubles

John Rekenthaler

Testing the Claim
On my desk is "Yes, It's a Bubble. So What?," by Research Affiliates. Being a fellow practitioner of the dark art of clickbait, I will not criticize the title. Whatever works. But I do confess, whenever I see the word "bubble," my instant response is "Says who?"

Consider the Research Affiliates paper's opening: "U.S. stock market valuations now exceed all historical valuation levels, except for those hit at the peak of the dot-com craze. This raises an obvious question for investors: Today, in early 2018, and has been the case over the last year, is the U.S. stock market in another bubble?" The authors' immediate answer is "Yes."

John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.

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