Sunday, June 23, 2013

This Bearish Argument Doesn't Add Up

This year, investors had become accustomed to a "one-way" market; through May 17, the S&P 500 (SNPINDEX: ^GSPC  ) was up a very respectable 14% year to date, and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) performed even better, with a gain of 14.5%. Since then, consistently rising stock prices have been replaced with a more volatile environment.  A greater frequency of losing days has emboldened market bears, who think the rally we've witnessed can only be followed by a nasty comeuppance. Are stocks overvalued and destined for a fall? In the following video, Motley Fool contributor Alex Dumortier explains why one bearish argument simply doesn't add up.

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