I’ve posted Entry #354 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Risk Increases Steadily As Stock Valuations Rise.
Juicy Excerpt: I worry about valuations a great deal. I don’t worry about bubbles at all. In fact, I would be inclined to agree with Eugene Fama, who has said that he does not believe that bubbles exist. I think that’s right. I believe that the bubble phenomenon is mythical. Overvaluation exists. Overvaluation is a big deal. But there is no knowable point at which harmless overvaluation becomes transformed into a dangerous bubble. All overvaluation is equally harmful.