What Would Alan Greenspan Say About This Stock Market?
Several valuation metrics suggest the current market is strongly overvalued.
Overview
Way back in 1996, when I was a cub reporter for The Wall Street Journal, then-Federal Reserve Chairman Alan Greenspan made a speech in Washington that rocked the financial world.
"But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions," Greenspan famously said.
Details
Investors around the world listened and then sold on the warning. However, the sell-off was brief, and the dot-com bubble continued to inflate for three more years before crashing in early 2000, wiping 78% from the Nasdaq Composite and 49% from the S&P 500 by October 2002.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.