I think the attached analysis of whether we are in a bubble is worth close attention. Two points raised which I find particularly important are the concentration in a few large momentum stocks in a few industries, mostly technology and finance related. This reminds me of the auto sector bubble at the turn of the 20th Century where only auto stocks were involved.
Secondly while there may not yet be euphoria from the Chicago Fed Forecasting Conference I can confirm that there is tremendous complacency and overoptimism along with willful blindness of anything economically negative such as the apparent weakness in the housing sector for both resale and new housing which the new tax law and higher interest rates can only have exacerbated.
Indeed one critical question is what the non-deductibility of high property taxes for owners of those homes does to their cash flow coverage projections and whether all prime mortgages in those areas will remain prime.