For the past six months, and probably longer than that, investors and the financial media have been asking themselves or have been asked whether the market is overvalued. The market has marched higher and higher and the S&P 500 is now up 29% for the year. There also seems to be signs of a return of ridiculously-priced IPOs, mostly dot coms and bio-tech stocks in my opinion. People have explained why the market is overvalued by citing Schiller's CAPE ratio or that abnormally high profit margins will eventually revert to the mean.

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