Are Stock Prices Too High 9/23/25

Summary

Your Money Minute – “Are Stock Prices Too High?”

Host: Jessica Ettinger (CNBC)
Date: September 23, 2025
Episode Length: 1 Minute (excluding ads)

Overview

This episode of Your Money Minute, hosted by Jessica Ettinger, dives swiftly into the question on many investors’ minds as U.S. stock markets hit new peaks: Are stock prices simply too high, and should you worry about your retirement account amid these record highs? Featuring insights from NYU Business Professor Oswald Motor, this quick segment unpacks current market valuations and what might come next.

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Key Discussion Points & Insights

• Stock Prices at Record Highs

  • Jessica Ettinger opens the episode by acknowledging that many retirement accounts are robust right now due to record market highs, leading to concerns about overvaluation.
    • (00:00) “Is your retirement account looking pretty solid right now? With recent record highs in the markets, could stock prices simply be too high?” – Jessica Ettinger

• “Richly Priced” Markets

  • NYU Professor Oswald Motor immediately addresses the fundamental issue:
    • (00:12) “They're richly priced. That's the only way to describe it.” – Oswald Motor

• Beyond the Tech Sector: Broad Valuations

  • Prof. Motor stresses that this is not just a tech phenomenon:
    • (00:18) “It's not just tech, right? Stocks collectively are trading at prices that I think... I'm not going to use the B word—the bubble word—because that suggests that somehow the prices have nothing to do with earnings. Clearly, earnings have held up.” – Oswald Motor
  • He avoids calling the market a “bubble,” citing the role of earnings in supporting high prices.

• Market Pullbacks: Expectation and Triggers

  • Jessica summarizes market experts’ concerns and outlines the possible triggers for correction:
    • (00:30) “So some market experts tell CNBC it's got to be time for a pullback. But barring a geopolitical or other shock, the professor says small pullbacks would be normal and all-time highs are ok.” – Jessica Ettinger

• Earnings as a Key Support

  • Prof. Motor reiterates that strong corporate earnings are keeping markets elevated, and absent an earnings miss, a major correction isn’t imminent:
    • (00:42) “So I think the market is being held afloat by the earnings numbers. And as long as the earnings numbers keep coming in, there is no catalyst for an adjustment. But I think it's not just big tech. It's not just tech. It's collectively all stocks.” – Oswald Motor

• S&P 500 Historical Context

  • Ettinger puts this year’s performance in historical perspective:
    • (00:55) “As of last Friday, The S&P 500 index had notched a gain of more than 10% so far for the year, about its average annual return for the past 50 years.” – Jessica Ettinger

• Key Takeaway

  • The market is richly valued—across sectors—due to strong earnings. Moderate pullbacks are to be expected, but an outright crash seems unlikely absent a major external shock or a sharp decline in earnings.

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Notable Quotes & Memorable Moments

• Cautious optimism and context for current valuations:

  • (00:18) “I’m not going to use the ‘bubble’ word... Clearly, earnings have held up.” – Oswald Motor

• Resilience beyond just tech:

  • (00:42) “It's not just big tech. It's not just tech. It's collectively all stocks.” – Oswald Motor

• Historical baseline for market performance:

  • (00:55) “The S&P 500... had notched a gain of more than 10% so far for the year, about its average annual return for the past 50 years.” – Jessica Ettinger

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Timestamps for Important Segments

• 00:00 – Introduction: Are stock prices too high? (Jessica Ettinger)
• 00:12 – "Richly priced" description and market assessment (Oswald Motor)
• 00:18 – No bubble, earnings holding up (Oswald Motor)
• 00:30 – Discussion of possible pullbacks and triggers for correction (Jessica Ettinger)
• 00:42 – Broad market strength, not just tech sector (Oswald Motor)
• 00:55 – Historical performance and S&P context (Jessica Ettinger)

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For ongoing updates and market news, Jessica Ettinger recommends following CNBC.com.

Transcript

[A]

With a CNBC your Money minute, I'm Jessica Edinger. Is your retirement account looking pretty solid right now? With recent record highs in the markets, could stock prices simply be too high?

[B]

They're richly priced. That's the only way to describe it.

[A]

NYU business professor Oswald Motor in on cnbc.

[B]

It's not just tech, right? Stocks collectively are trading at prices that I think I'm not going to use the B word that the bubble word because that suggests that somehow the prices have nothing to do with earnings. Clearly, earnings have held up.

[A]

So some market experts tell CNBC it's got to be time for a pullback. But barring a geopolitical or other shock, the professor says small pullbacks would be normal and all time highs are ok.

[B]

So I think the market is being held afloat by the earnings numbers. And as long as the earnings numbers keep coming in, there is no catalyst for an adjustment. But I think it's not just big tech. It's not just tech. It's collectively all stocks.

[A]

As of last Friday, The S&P 500 index had notched a gain of more than 10% so far for the year, about its average annual return for the past 50 years. Keep up on the markets. @cnbc.com I'm Jessica Ettinger, CNBC. Hey, Fidelity, what's it cost to invest with the Fidelity app?

[C]

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[D]

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