Excerpt from Business Insider quoting DataTrek’s Nick Colas:
…. “The stock market is not yet in a bubble, but a “baby bubble” might be forming, DataTrek co-founder Nicholas Colas said in a note on Wednesday.
In order for a bubble to even form in the stock market, two conditions are necessary: fast rising valuations and retail investor fervor, according to the note.
“We don’t have the first, and the second is just starting,” Colas said.
Based on the Shiller PE ratio, the bubbles of 1929 and 2000 were evident when a sharp move higher in valuations occurred. It’s about the rate of change in valuations, not the absolute valuation levels that indicate a bubble is present, according to the note”….
Read the full article here on Business Insider!