Share markets around the world have done very well this year. Indeed, some believe too well.

UK newspaper The Telegraph claims that “The stock market is a bomb waiting to go off” and The New York Times reports “Warning: Our stock market is looking like a bubble” although the authors say “no one can be certain”.

Are they right?

Let’s discuss theory. The efficient market hypothesis is the nutty sounding statement that whatever the share price of a company is trading at today is the right price. It implies all is well with the share market, move along nicely, nothing to see here.

Full disclosure: I believe the EMH. And, yes, I’ve observed markets and read and thought about them a lot. It’s my job. However, prices being right today don’t mean they won’t fall (or rise) tomorrow, perhaps dra

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