Rauch: Is the Bubble Returning?

George Rauch: Is the Bubble Returning?

No. The bubble never left. The above chart is interesting because it tells a story of the market's performance since 1920. Keep in mind this is the Dow Jones Industrial Average, which, for this period, represented at least 25% of the value of all U.S. stocks, most importantly including a cross section of the shakers and movers that reflect the direction of the U.S. economy.

The market's increase from 1982 to 2000 was out of proportion to prior increases in value.