In my previous blogs I have illustrated the phases of Economic cycle which are; Phase I - Initial Recovery and Phase II - Early Upswing. So let’s go to Phase III - Late Upswing. Watching Dow Jones going all time crossing 21000 mark brings a question in my mind "Is the US market expensive?" We will analyze the information before creating a view using the theory of market cycles and comparing it with Phase III - Late Upswing. In this phase the economy starts to get overheated, business confidence is at the top, unemployment falls, inflation starts increasing, both short term and long term rates tends to rise and stock prices are rising. This is the last phase before the economy goes into "Recession". 1) Confidence and Employment :- Consumer and Business confidence in the US is at all time high, while unemployment is at all time low. Below mentioned data gives us some insight into the unemployment rate for the last 16 years, being the lowest in 2007 at ...