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Javier de Berenguer, analyst and fund selector at MAPFRE Inversión, analyzes the possibility that we are facing a stock market bubble by reviewing the available data.

This week, the world's major stock markets have seen days of heavy selling, mainly driven by doubts about high valuations in the technology sector and the Fed's less favourable stance on interest rate cuts in the short term. But these slight declines are a ‘healthy’ adjustment after recent gains, according to Alberto Matellán, General Manager of La Financière Responsable.

With just one month left to close the fiscal year, markets remain upbeat, and according to Alberto Matellán, General Manager at La Financière Responsable, that optimism could last a while longer. “I think the trend may continue, because the reasons behind it should not necessarily disappear,” he says.

October was another month of positive returns for both equities and the main fixed-income indices. This solid performance in the capital markets was mainly driven by an upturn in economic indicators, a better-than-expected earnings season, and another interest rate cut by the Federal Reserve.

The Spanish stock market is celebrating: its benchmark index, the IBEX 35, reached a new all-time high of 16,000 points on October 27.

The U.S. Federal Reserve has once again cut interest rates by 25 basis points, placing the range between 3.75% and 4%.

The Spanish Stock Exchange is experiencing a moment of euphoria. Eighteen years later, the IBEX 35 has reached all-time highs, surpassing 16,200 points and accumulating an increase of nearly 40% so far this year.