This year, investors had become accustomed to a "one-way" market; through May 17, the S&P 500 (^GSPC +0.13%) was up a very respectable 14% year to date, and the Dow Jones Industrial Average (^DJI +0.16%) performed even better, with a gain of 14.5%. Since then, consistently rising stock prices have been replaced with a more volatile environment. A greater frequency of losing days has emboldened market bears, who think the rally we've witnessed can only be followed by a nasty comeuppance. Are stocks overvalued and destined for a fall? In the following video, Motley Fool contributor Alex Dumortier explains why one bearish argument simply doesn't add up.
This Bearish Argument Doesn't Add Up
By Alex Dumortier, CFA – Jun 14, 2013 at 5:41PM
DJINDICES: ^DJI
Dow Jones Industrial Average
Market Cap
$0.0M
Today's Change
(0.16%) $74.80
Current Price
$46987.10
Price as of November 7, 2025 at 4:41 PM ET
Price levels can only tell you so much.
About the Author
Alex Dumortier writes a twice-daily column covering topical subjects from a contrarian, value-oriented perspective; he also co-authored 'The Astonishing Collapse of MF Global'. He received his degree in Economics and Political Economy from Princeton University and began his career in the City of London.
After having lived in several capital cities, Alex now resides in Washington, D.C.. When he is not reading or writing, Alex likes to run and practice Bikram yoga (a form of "hot" yoga.)