- Like many investors, I have been thinking about Bubble Risk in light of traditional market valuation metrics showing today's US equity prices to be at or near historic highs.
- Readers can review the data in this article and draw their own conclusions about Bubble Risk for the Market overall as well as the 100 largest market caps in US.
- Perhaps the most interesting data in this article centers on the concentration risk associated with the S&P 100.
- My view is that the Market has high risk of correction; this risk is not spread evenly across the 100 large caps.
- Part 2 in this two-part series will further examine relative value among the top 100 companies and offer my action plan for mitigating Bubble Risk.
For further details see:
Quantifying Bubble Risk: Market Vs. Top 100 S&P Companies Individually - Part 1