The stock market is feeling awfully frothy to some investors lately, a fact that has helped to weigh on the market’s bullish sentiment in the past week or so, but a report by Ray Dalio implies that equities aren’t as bubblicious as one might think.
Dalio is the founder of Bridgewater Associates, the world’s largest hedge-fund firm, which has made him a billionaire and comments consistent attention grabbers. Based on those factors, and using data that go back to the 1910s, Dalio’s indicator suggests that markets are frothy but not necessarily in a bubble by his definition.
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