Commentary There is a simple, but often overlooked, truth about market bubbles. Market bubbles have NOTHING to do with valuations or fundamentals. Yes, currently valuations are at levels only seen at the peak of previous bull markets. As shown, the S&P 500 currently trades in the upper 90 percent of its historical valuation levels. However, since stock market “bubbles” reflect speculation, greed, emotional biases, valuations are the reflection of those psychological tendencies. As such, price becomes more reflective of psychology. From a “price perspective,” the level of “greed” is on full display. Currently, the S&P 500 trades at the greatest deviation on record from its long-term exponential trend. (Such is hard to reconcile given a 35 percent correction in 2020.) In other words, bubbles can exist even at times when valuations and fundamentals might argue otherwise. Notice that except for only 1929, 2000, and 2007, every other major market crash …