Is the Stock Market in Bubble Territory?

"True wisdom comes to each of us when we realize how little we understand about life, ourselves, and the world around us." ~ Socrates

Has the stock market gone too far in the positive direction?  Is it time for a corrective pull-back in the downward direction?  Are stock prices in bubble territory?

Answers to questions like these will likely come in one of three general forms:

1. The Fool: Makes a prediction, cites evidence supporting his/her bias, then acts on the prediction.

2. The Scientist: Begins the answer with "It depends..." then forms a hypothesis (educated guess); but does not take any actions based upon the hypothesis.

3. The Philosopher: Says, "I don't know" and goes about living the life that money cannot buy.

To be wise is to be fully aware of one's own ignorance.

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Related:

Beware of Confirmation Bias

Why Make Predictions?

We are all 'Naive Scientists'

Comments

[globaloption]

Stock market is an important part of the countrys economic life. The stock market has a key role in economic growth that eventually affect the economy of the country to a large extent. This is the reason that the banks the government, industry, and events central to maintaining a close, the stock market. Stock market is important both for the sector from the point of view of an investors viewpoint.

[Economic Problem]

@globaloption it is true that the stock market has its role and importance in economic growth. Several countries had proposed market capitalization for several industries which had affected the economic growth in a way.