In the latest Take 5, hosts Ryan Detrick, Chief Market Strategist, and Sonu Varghese, VP, Global Macro Strategist, tackle the big question making headlines: Is the stock market in a bubble? With comparisons to 1929 floating around, it’s easy to feel uneasy. Ryan and Sonu break down the facts—profit growth, valuations, historical context, and where different sectors stand today.
Key Takeaways
- Market Performance: The S&P 500 has seen a 125% gain since 2019, despite COVID, inflation, and rising rates.
- Profits Drive Growth: About two-thirds of this year’s returns are fueled by profit growth, not speculation.
- Valuations: Some areas look pricey, especially big tech, but many parts of the market (small caps, mid caps, international) haven’t even hit new highs yet.
- Historical Perspective: Unlike true bubbles of the past—tulips, Japan’s real estate boom, or the dot-com era—today’s rally has fundamental support.
