Why 'bubble talk' doesn't always burst markets

Every market cycle brings a familiar chorus of warnings. Headlines predict an imminent crash, investors fear valuations have lost touch with reality, and social media hums with talk of bubbles. Yet when we look beyond the noise and focus on the data, the picture is far more measured. Global equity markets today display many hallmarks of a late cycle environment: steady but slowing growth, moderate valuations, and a natural rotation between sectors. What they don't show are the signs of speculative excess typically seen before a downturn. Earnings remain strong, particularly among larg...