“The Greatest Bubble Ever”: Wilshire 5,000 vs. DPI

Economica  ( Original )
JAN 29, 2018

When compared with disposable personal income, the stock market has never been in the midst of such a valuation bubble. Ever. In fact, it’s not even close.

One more look but from a different perspective. Real disposable income on a per capita basis versus the Wilshire. Again, asset prices have de-coupled from incomes. Of course, most of the income gains are due to a tiny fraction and are not representative of the reality of flat to declining real incomes for the vast majority of households.

A stock market boom born of government-driven debt stimulus can’t run in the face of directly contradictory fundamental metrics forever. More and more basic data point to an inflection point coming sooner rather than later.

ORIGINAL SOURCE: Gauging Contemporary Bubbles by Chris Hamilton at Economica on 1/26/18