In Part 1 of this series called “Why U.S. Household Wealth Is In A Bubble,” I explained why America’s post-Great Recession wealth boom is driven by a tremendous bubble that will end in tears.

In Part 2 of this series, I will go into more detail about the U.S. stock market bubble that is a major driver of the overall household wealth bubble. Common stocks – including those held indirectly in mutual funds – are one of the largest components of U.S. household wealth, along with bonds and housing. When stocks are extremely inflated, like they were during the late-1990s Dot-com bubble, they contribute to the inflation of household wealth. Conversely, when stocks experience a bear market, like they did when the Dot-com bubble popped, household wealth falls as well. In this piece, I will show a wide variety of charts and other data that prove beyond a reasonable doubt that the U.S. stock market is excessively inflated and heading for serious pain.

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