Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  7   Issue 08  2018  
Article Abstract
Are There Bubbles in Your Retirement Portfolio?
Keywords:  Financial bubbles, stock market, quantitative easing
Kevin Sigler, PhD
This article examines four previous stock bubbles: the South Sea Company bubble, the 1929 stock bubble, the 2000 Dot Com bubble, and the 2007 housing related stock bubble and compares today's stock market action to them. It appears the Shiller PE for the S&P 500 in May of 2017 is near the same elevated overbought bubble level as found in 2000 and 1929. The Market Capitalization to GDP of 127.7 percent has only been higher during the 2000 stock bubble. In addition, economist and market expert, John Hussman, analysis indicates that today the median stock in the US is the most overvalued in history. Is the stock market in the US in a valuation bubble? The statistics say yes but no one knows for sure. It may the time, however, for people with retirement accounts to consider if the stock market is the right place to have their money invested.
07-12   |  View PDF