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How I learned to stop worrying and love the bubble

Market frenzy across the Atlantic needn’t trouble investors closer to home

By Andy Davis   April 2021

Image: Paul Rushton / Alamy Stock Photo

Paul Wallace is right to ask whether we are in bubble territory. Warnings over the soaring US stock market have been getting steadily louder since prices rebounded sharply from their Covid-induced swoon a year ago. Mass retail stock-picking, rocket-powered price rises and extremes of valuation suggest trouble ahead. With most economies still to open up after the pandemic, activity could get a lot more frenzied before it runs out of puff. 

For most of us, the big question is: does this matter? It is clearly possible that a bubble of alarming proportions is forming in the US. According…

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