The Russell bubble is so long in the tooth, its not even funny. What is the disconnect here. How can it go up for an eternity? This is so insane, I don't understand, how it is always able to maintain its bid. Its up today, and will be up tomorrow......because its Friday!!
It's not dependent on China.
It's not internationally bound.
It's the small local guys the 67% carrying the nation
It doesn't depend on borrowing costs.
It isn't encumbered by Obamacare due to the rollback to 2015.
See how that works?
P/E of 60! Return-free risk! The earning capacity of the companies in the Russell 200 doesn't even come close to justifying this price. This has the highest valuation (and worst expected returns) of any major stock or bond index in the world right now. History suggests that the Russell 2000 will still be trading BELOW today's level 10 years from now! People (and machines) are trading this back and forth for prices WAY above fair value. The second anyone blinks--this will hit a huge air pocket. You can't call it to the day, but it could easily drop 30-40% any time.