This Bearish Argument Doesn't Add Up

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This year, investors had become accustomed to a "one-way" market; through May 17, the S&P 500 was up a very respectable 14% year to date, and the Dow Jones Industrial Average 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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Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned; you can follow him in LinkedIn. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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