5 Signs The Stock Market Is In A Bubble

Encouraging economic news lifts stocks

stock exchanges has decreased every year. As a result, it doesn't take a lot of activity to move stock prices up. Corporate profits are increasing, but revenues aren't. As of Monday, 49 percent of companies in the S&P 500 had reported results for the third quarter of this year. And according to a report from FactSet, "The percentage of companies reporting earnings above estimates is above the four-year average, while the percentage of companies reporting revenue above estimates is below the four-year average." This suggests earnings are increasing not because companies are growing, but because they are cutting costs and buying back stock. There is a limit to how long they can continue to do this.

View gallery FILE - In this Thursday, Nov. 14, 2013, file photo, retired U.S. Army Sgt. 1st Class Duane Stubbs, right, of Morrow, Ga., shakes hands with retired U.S. Army 1st Sgt.