from wiki "economists say that a financial asset exhibits a BUBBLE when its price exceeds the present value of future income" ie its intrinsic value.
I have subsequently looked a basket of 30 blue chip stocks and used morning stars intrinsic valuation and come to the conclusion that based on their valuations the market is undervalued by 9.7%
ok it has to go up another 10% before price = value ie it must go from 4637 to 5,100 before it is fair value
we could well be in a bear trap However we haven't got long before we get to fair value.
