AP survey: Economists see no stock market bubble

[I AM NOT THAT GUY 5,715]

WASHINGTON (AP) — A nervous debate is raging among investors and analysts: Has the Federal Reserve inflated a stock market bubble by driving interest rates to record lows?

The answer, according to economists surveyed by The Associated Press: No.

Three-quarters of the economists say stocks, which are at their lowest point in a month but are up 19 percent since November, aren't overvalued. Many point to strong corporate profits as justifying the surge in stock prices, which have more than doubled since bottoming in 2009.

The economists expect many consumers to respond to their increased stock wealth by spending more in coming months. Higher spending would help sustain and perhaps accelerate growth.

The economists think growth is slowing to around a 2 percent annual rate in the April-June quarter from a 2.4 percent rate last quarter. The key reasons: Federal spending cuts, higher taxes and economic weakness in Europe and elsewhere.

But they say U.S. economic growth should increase in the second half of this year and speed up next year. Besides the stock market gains, steady job growth and surging home prices will likely fuel more spending.

They forecast that growth will reach 2.8 percent in 2014 as hiring accelerates and consumer confidence — now at a five-year high — improves further. If they're accurate, that would be the fastest growth since 2005.

http://xfinity.comcast.net/articles/news-national/20130606/US-AP-Economy-Survey/

[JohnR! 5,495]

The answer, according to economists surveyed by The Associated Press: No.

Translation: Yes.

[I AM NOT THAT GUY 5,715]

Translation: Yes.

Not until all the suckers get in too late.

[GandD 5,966]

There is also a housing bubble again in a few hot markets....

Atlanta?

[JohnR! 5,495]

Not until all the suckers get in too late.

There is also a housing bubble again in a few hot markets....

I read somewhere that people are back already on the flip wagon down in LA....

[GandD 5,966]

The Bay Area for one.

Diff country I know, but the GTA in Canada can not possibly maintain its housing boom.

[Mr. Big Dog 10,747]

I read somewhere that people are back already on the flip wagon down in LA....

That's starting back up here as well. Shortage of available homes, bidding wars and all. Friend of mine put his house up for sale a month or so ago - had it sold within 48 hours.

[I AM NOT THAT GUY 5,715]

There is also a housing bubble again in a few hot markets....

Yep. Prices up 19% in the North SF Bay Area. About time, we took the biggest hit when prices fell by more 60%.

[OriZ 3,157]

Of course they don't think so, since when have people actually known they were in a bubble while they were in a bubble? Makes being in a bubble not so much fun. Bubbles can only be created if people do not realize it is a bubble. And right now, it is the mother of all bubbles. Now that doesn't mean it will burst tomorrow morning(actually I believe the market will go sideways to up in the coming 9 months at the very least) but within 3 years the market and the economy are going to be in such shambles that will make 2008-9 appear like a walk in the park.