Bubble “Resistance” Proves Formidable

Many pundits would contend that a stock-market bubble can’t exist (or even develop) with consumer pessimism as widespread as today. We are not so sure, but we currently don’t think U.S. Large Caps quite qualify as a mania, either, since the stock market was just rebuffed at three of the four valuation thresholds we use for making that determination. Bubble or not, if the market peaks out here, it will represent the third most-expensive top in the history of our valuation work.