Are US equities in a bubble

Are US equities in a bubble? An article on Yahoo Finance suggests it's far from a sure thing. Analysts who claim stocks are in a bubble have mostly been focusing on prices in relation to bottom line profits. However, operating profits are sitting right near the 30-year average. In other words, companies are benefiting from low tax rates and low interest rates - a situation made plausible due to the financial crisis. Plus, both taxes and interest rates are not likely to change in the near future, suggesting companies could continue posting strong profits. The author does point out there are several macro factors which could derail the rally, such as fiscal issues, Fed policy, and loss of investor confidence in emerging markets. Regardless, this is an interesting take on corporate profits and is well worth the read. (VIEW LINK)