(New York)

Well the stock market finally stabilized yesterday with a solid rally (who knows where it will end up today), which may let many breathe a sigh of relief. However, one of the most prominent names in investing, in his typically unemotional way, says that stocks are currently very dangerous as they look like the definition of a bubble. Investors are still buying the market even though they think it is overpriced, saying Schiller. According to him, “that's almost the definition of a bubble. If you think it's overpriced but think it still has time to go, that's the definition of a bubble”.

FINSUM: So our view is that there is still a good deal to be positive about, but that if you really think we are in for a correction, then what just transpired was not nearly enough to “correct” the market.