Just because the price of something is going up doesn't mean it's a bubble. Even if it's going up a lot. And even if it's something you don't like. After all, there might be a good reason it's going up so much. A good reason like ... record profits.
The S&P 500 has had a good year. It's up over 18.6 percent the past 12 months -- enough that Hamilton Nolan of Gawker thinks it just might be THE NEXT BUBBLE. (Dun dun dun). But what's his evidence that valuations have rocketed away from reality into the non-planetary realm of Pets.com? Well, the S&P 500's price-earnings (PE) ratio has jumped 14 percent the past year, the most since 1999, jumping all the way up to ... 16. So case closed?
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