You’d be excused for thinking that with all-time high after all-time high over the past week, global stock markets led by the S&P 500 might be fully valued.
They might indeed be over-valued.
Not so, according to former Fed Chairman Alan Greenspan, who made the famous “irrational exuberance” call back in the 1990’s before the tech bubble went pop.
Greenspan told Sara Eisen on Bloomberg Television that:
In a sense, we are actually at relatively low stock prices…Indeed I say that so-called equity premiums are still at a very high level, and that means that the momentum of the market is still ultimately up.
He went on to say stocks are “not bubbly” and the highs that have recently been eclipsed are from 2007.
Interesting, I’ll have to buy his book!
Here is a clip of his interview with Sara (the stock market comments starts around 3:50):