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Americans are Wary that Stock Market Bubble Will Burst

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the staff of the Ridgewood blog

Ridgewood NJ, according to Rasmussen Reports, Americans  are wary that stock market bubble will burst . The stock market has recently hit record highs, but Americans are increasingly worried that the boom won’t last much longer.

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Is the Fed fueling a giant stock market bubble?

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Is the Fed fueling a giant stock market bubble?

John Maxfield , The Motley Fool12:25 p.m. EDT July 27, 2014

Take a good look at the chart below and you’d be excused for concluding that we’re in the midst of the greatest stock market bubble of all time. Not only has the S&P 500 fully recovered from the financial crisis, it’s a staggering 30% higher than the peaks of the Internet and housing bull markets.

But is this really the case? With unemployment still above 6%, how could we find ourselves in the throes of yet another brewing catastrophe? Didn’t investors and analysts learn anything from the past decade and a half?

While it requires some explanation, the answer is that we’re most likely not experiencing another irrational inflation of stock prices. The market’s record level is instead a predictable response to the Federal Reserve’s policy of keeping interest rates at historically low levels.

https://www.usatoday.com/story/money/markets/2014/07/27/is-the-fed-fueling-a-giant-stock-market-bubble/13172261/