The SPDR Select Consumer Discretionary (XLY):S&P 500 price ratio has bounced off its lows, yet continues to remind investors to rethink their allocation.

Authors Lu Wang and Joseph Ciolli at Bloomberg described the fear of U.S. stocks falling as “bubble paranoia.” Yet, if fundamental and technical indicators both suggest that U.S. stock assets are extremely overvalued, is the maladjustment with some investors or with the markets themselves?