Yes, the Stock Market is Bubbling — Market Mad House

America’s stock market is in a dangerous bubble that could collapse. The S&P 500, for example, has erased the gains it made in 2020.

The S&P 500 started 2020 at 3,257.85 on 2 January 2020; rose to a high of 3,580.84 on 2 September 2020 and fell to 3.351 on 28 September 2020. The highs are just part of the S&P 2020 roller coaster ride. The Standard & Poor’s (S&P) 500 fell to a low of 2,237.4 on 23 March 2020.

Stocks to be Afraid of

Individual stocks are far more frightening than the S&P. For example, Mr. Market paid $199.45 for Union Pacific (NYSE: UNP) shares on 28 September 2020.

The Union Pacific’s revenue growth fell by 24.16% in the quarter ending on 30 June 2020. Meanwhile, Union Pacific (UNP) CEO Lance Fritz admits the UP’s shipping volume fell by 20% in 2nd Quarter 2020. Yet Union Pacific’s stock price rose from $182.27 on 2 January 2020 to $19.45 on 28 September 2020.

Frighteningly, the Union Pacific is good compared to some overvalued stocks on today’s market. In particular, cloud computing company Veeva Systems Inc. (NYSE: VEEV) shares traded at $281.92 on 28 September 2020. However, Veeva Systems had total assets of $2.516 billion on 31 July 2020.