Stocks are within 2% of their all-time highs. The front page of USA Today just touted the bull run's solid footing, and new analysis shows a huge uptick in the word ''bubble'' appearing on Twitter. It has to mean we're doomed, right?
Wrong, says economist, author, actor and dog lover Ben Stein.
"This is not a bubble," Stein declares in the attached video. "There could be a substantial correction if the Federal Reserve purposely tries to raise interest rates. But bubble is defined by the ratio of price-to-earnings, and by that ratio, this is not a bubble."
In fact, he argues that stocks aren't even at all-time highs by most metrics, including price-to-earnings, price-to-book and inflation-adjusted.
"They are high, to be sure, and they could easily correct, but it's not a bubble in the classic sense," he maintains. "This is a stock market that is very well priced, very fully priced, but bubble doesn't really apply to it."
As for those who are looking for hints in social media or the ill-timed headlines of major publications, Stein contends short-term predictions are just too hard to make. "If you believe sincerely that you will learn how to get rich by reading USA Today, you need to have a very long rest out of the sun."Read More »from This Is NOT a Stock Bubble! Says Ben Stein