Enough With the Bubble Talk

NEW YORK (TheStreet) -- Can we just stop with the bubble talk? Please!

It's getting old seeing headline after headline online and on TV about how equities are in a bubble.

3D printing? Bubble. 

Solar stocks? Bubble.

Social media? Bubble. 


Enough is enough. Perhaps the Federal Reserve's asset printing could cause one to question a bubble in liquid assets. But purely based off of traditional metrics such as valuation, the claim to a bubble is asinine. 

Now that the market has declined for a few sessions, the talk is quieting -- for now. But that hasn't stopped writers and investors alike from making the Nasdaq's highest close in 13 years a far bigger deal than it ought to be. The companies pushing the index higher are some of the most profitable in the world, a much different scenario than Nasdaq's last stint above 4,000. 

And I'm sick of hearing about the Google (GOOG) references too. Just because the general investing public Googles the term "bubble" doesn't mean we're actually in one. If "Armageddon" was being searched frequently, it wouldn't indicate that the world would be ending soon, would it?

Don't get me wrong, I'm not making a case saying that equities are cheap. Stocks are fairly to fully valued as it stands. Should the global economy kick it up another notch, then earnings multiples should expand and equities would continue to rise, and vice versa. 

But looking for the correction based on a bubble is ludicrous. It's like the guys who drew a horizontal line from the peaks in 2000 and 2007, over to the soon-to-be-new all-time highs in 2013. Some argued that we were forming a "triple top" and would soon encounter a huge decline as a result. 

If you liked this article you might like

Why Alex Rodriguez Is Investing in Billionaires Warren Buffett and Jeff Bezos

Former NY Yankees Slugger Alex Rodriguez Reveals One Juicy Investment Tip

Why I Love Apple, Alphabet, Nvidia and These Other Stocks for September

Have Amazon, Google, Apple and Sony Flooded the Smart Speaker Market?