The stock market rally is just another bubble — and it’s set to pop

John Stepek
MoneyWeek
September 21, 2009

[efoods]Stock markets continue to expect the best of all worlds.

There will be a V-shaped recovery. Everything is headed back to normal. At least, that’s what you’d believe if you just look at the way stocks have surged.

But the ‘real’ economy is telling a different story. And it’s one that could spell a very sticky ending for the current rally…

We’re in a bubble

Money printing by the Bank of England and other central banks across the world has worked. Sort of.

The free and easy money being dished out by the world’s central banks is finding its way into assets, particularly financial assets such as stocks and bonds. That’s great for asset prices, as the surge in stock market since March has demonstrated.

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