It feels like every week there's a new headline telling us the market is either unstoppable or about to crash.
AI stocks continue to dominate conversations, major indices sit near all-time highs, and investors seem more confident than they have been in years. Naturally, that leads to one question:
Are we in a bubble?
The truth is, nobody knows.
There are certainly signs that concern some investors. Valuations in parts of the market are elevated, a handful of companies are driving a large percentage of returns, and many newer investors have only experienced rising markets.
At the same time, many businesses are generating strong profits, earnings continue to grow, and technological advances such as artificial intelligence are creating genuine opportunities.
Rather than trying to predict whether a bubble will burst, I prefer to focus on something far more important.
