This is not irrational exuberance yet
It is getting close, but we are not there yet. Currently, the market is definitely overpriced but its mood is still best described as rational exuberance. Here I must strongly disagree with GoodVibe's call and suggest instead that the final parabolic stage of the rally is still ahead of us. Those of you who are calling the top here have no idea just how far the euphoria takes the market once it sets in. How about Coca-Cola at a PE of 40? MSFT at a PE of 60? PETS.com at a PE of -4, the minus sign because earnings are negative and the low absolute value because the denominator is so big numerically? Don't worry, ladies and gentlemen, we'll see all of that and even more. And of course it will all end in another crash, but the bears' challenge meanwhile will be to survive to see that day. Very few of them will. Most of them will have their accounts liquidated after a series of failed attempts to short the market at what appears to be the top.