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Mark Hulbert: Believing all this talk about a stock market bubble can land you in real trouble

Repeat after me: The stock market is not in a bubble. I suppose it was inevitable that the stock market’s new all-time high this week would cause bubble talk to bubble up, so to speak. Yet, it shouldn’t need repeating, calling something a bubble doesn’t make it a bubble.

To be sure, I’m not predicting that happy days are here again. The absence of a bubble doesn’t mean that a bear market isn’t imminent. But surely there is a difference between a bear market and a bubble bursting.

What is this difference? Will Goetzmann, a finance professor at Yale University, told me in an interview that in large part this has to do with the moral overtone that investors have when they declare something to be forming a bubble.

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