It has been quite an exciting month for the markets. Post-covid stocks are on fire after vaccines news came out one by one. Dow Jones hit 30,000 and Singapore’s Straits Times Index kissed 2900 points this week. We even have oil at US$45. This is shaping up to be a solid year for the markets despite the pandemic and recession. Speculative stocks driven by Rohinhood investors have gone insane, causing poor fundamental value investors to question their own methods. However, when I see greed in the markets, I will start to fear that we may be approaching a market bubble. Advertisements Is This An Equity Bubble? Bubbles are best identified by credit excesses, not valuation excesses. Will we continue to see a market rally as we approach the last month of the year? Or will this be a bubble which will burst to reflect reality. But first, let’s define the model of a bubble...