Hey, Ross here:
Markets may have pulled back a little to close out last week, but make no mistake – we’re once again at fresh record highs…
And with record highs comes the familiar doom-mongering cries of “bubble”…
So let’s start the week by looking at a chart that shows why we should not be worrying about that right now.
Chart of the Day
This is Ray Dalio’s “Bubble Gauge” – his own measure of how frothy the U.S. stock market is based on factors including cash flows, debt-financed purchases, and cycle timing.
As at the beginning of the month, this bubble gauge stood at 52% – far below levels seen during past bubbles (above 70%).
Now, obviously markets have risen since the beginning of the month. And Ray Dalio – legendary investor though he is – is not the be all end all of bubble detection.
But my point is this – just because the market keeps hitting new highs does not mean we’re in a bubble.
Many of the greatest minds in investing think the market still has plenty of room to keep going up.
I agree with them.
And as I explain in the Insight of the Day – people crying “bubble” in a bull market creates opportunities.
Insight of the Day
As people crying “bubble” capitulate and buy into the market – they ironically create more fuel for the market to keep rising.
Those who think this market is in a bubble will be sitting on the sidelines.
And as the market keeps rising, many of them will capitulate and start participating – ironically giving the market more fuel to keep going up.
That’s why I like it when I hear all these bears crying bubble in the middle of a bull market – because it’s an opportunity.
And that’s why tomorrow at 11 a.m. Eastern…
I’m going LIVE for a masterclass that will allow you to take advantage of this bubble opportunity by targeting the strongest stocks in a strong market.
So make sure you click here to save your spot for my masterclass…
Block your calendar…
And watch for the masterclass login details in your inbox tomorrow morning.
Let’s keep riding the bull.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
