The overall US indexes aren't even remotely in a bubble at this point. However, there are individual stocks and partial sectors that have been. Canadian pot stocks last year were in a bubble. Certain IPOs and IT stocks are at unsustainable levels. However, the giants in IT aren't, they are making a lot of money and all they will do is sustained price growth ( if their earnings meet expectations ) or correct at some point when the masses take profits.
The way I look at the bull, is that old levels of resistance ( or declared tops on here ) often become long term support and the longer we remain above them the more legit they are. For example, the 1900 level seemed really strong in early 2016. More recently, the 2300-2400 area ( roughly ) looked like major support. If we go much higher, that 2900 area might be really strong support on any weakness. Some months ago, I noted what looked like a double bottom around roughly 2830. Activity since seems to have confirmed that observation.
The reason this is important is it helps delimit risk on a diversified long holding and it also illustrates a really good buying point if we do tank and the level holds well. As with any opinion however, we have to all be aware of major catalysts that change things. I see the US election as a major risk that can disrupt markets in either direction but more likely down if we have a strong year.
Without a major negative catalyst, like a confirmed US recession or several rate hikes, there is no real reason for markets to tank like some on here are convinced is a certainty. And their definition of the risks is killing their income potential now. No correction is going to upset me or my plan. The 2018 correction eventually made me a lot of money. Correct play right now is fully long ride the wave until such point as something fundamental changes.
