Irrational Exuberance Part Two?

1
Irrational Exuberance Part Two?

Twenty years ago today, Federal Reserve (Fed) Chairman Alan Greenspan gave his now-famous “Irrational Exuberance” speech at a dinner hosted by the American Enterprise Institute. The phrase was meant to be a warning about stretched valuations of equities during the 1990s bull market. Although his warning was three years early, the market factors Greenspan highlighted eventually did contribute to the dot-com bubble bursting, leading to the first 10-year decline (from 1999–2008) in the S&P 500, including dividends, since the 1930s, which was exacerbated by the early-2000s recession.

With equity markets making new highs and the bull market close to turning eight-years old, are we entering another period of irrational exuberance? This week we will examine this