Since Jeff Macke began his show on Yahoo Finance he has become the biggest bubble bull on the internet and the face of their video site.
He's a bit of a nut, but I have been following him to get an idea of what bulls are saying and thinking about the market.
It's important to get a range of opinions on the market and sift through them and come to your own conclusion.
Macke gives the bubble bull arguments.
So in this video he says the Nasdaq is going to 5,000 and that the stock market is not a bubble.
In order to make this claim notice that he does not say a single word about valuations or the price being paid for earnings.
You would think to make the argument that things are not a bubble he would talk about actual valuations.
But he can't, because the market is overvalued, so instead he simply talks about price action.
He says the only time the market was a bubble was at the end of 1999 and 2000 when it went straight up for several months in a parabolic rally.
Since Macke does not think the market is trading now like it did then in his world it is not a bubble.
So he thinks the market is just going to go up and hit a target of Nasdaq 5,000.
He's a momo trader who buys FB and think it is not at a high valuation, which is nuts.
But one lesson for you is that it is very dangerous to base your trading and investing decisions on price targets.
You can't expect a market to go down to a certain level so you can buy or go up to a certain level, because you cannot predict such things exactly.
You can see changes in trend in the market, but you cannot predict how high or low a market will go.
It's dangerous to do that, because it can cause you to have rigid thinking and let your price target prediction take over everything you are doing so that you ignore big trend changes when they occur.
I fear this will happen to Macke and the people who listen to him.