Brilliant editor in Barron's notes with alarm that past Fed Chairman, Alan Greenspan, stated that the current stock market shows no signs of "irrational exuberance." Of course, the inference is that Greenspan couldn't detect irrational exuberance if he was drowning in it.
As of last Thursday's close the Dow had risen on ten consecutive days, hitting record new highs on most of these days. This extraordinary series ended on Friday with the Dow sinking 25 hard-earned points.
Interestingly, the much broader S&P Composite ended Friday 1.5% below its bull market peak recorded October 11, 2007 at 1576.09.
After reading the latest issue of Barron's plus 12 weekend newspapers, I could make a convincing case for this market doing nothing or almost anything.
One of the premium arguments these days is whether stocks are overvalued, undervalued or priced just right.
In another century, Charles H. Dow concentrated on dividend yield as the best gauge of stock values. ... Log in or subscribe to continue reading.
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