This Stock Market Bubble Is Not Real (This 8% Dividend Proves It)

Core Viewpoint - The current stock market is not in a bubble, and there are strong reasons to remain bullish on stocks due to a booming economy and rising earnings [1][2]. Economic Context - The stock market's rise is attributed to a booming economy, despite societal issues like income inequality and crime [2]. - Earnings are growing significantly as companies enhance profits through efficiency gains, partly driven by AI advancements [3]. Earnings Performance - Earnings beats are reported across various sectors, including General Motors, Coca-Cola, Morgan Stanley, and tech companies like Broadcom and Lam Research [4]. - The technology sector continues to lead in earnings growth, but there is potential for gains in other sectors as innovations spread [5]. Investment Strategy - A broad-based market exposure is recommended, but traditional index funds with low yields are not suitable for income-focused investors [5]. - The Adams Diversified Equity Fund (ADX) is highlighted as a strong investment option, offering an 8% yield while outperforming the stock market over the last decade [6][8]. Fund Performance - ADX has yielded approximately 9.5% over the past decade, with a recent shift to more consistent distributions tied to its net asset value [10]. - As of 2025, ADX's total return, including dividends, is 21.7%, surpassing the S&P 500's return of 16.6% [11]. - ADX currently trades at an 8.3% discount to its net asset value, which is expected to decrease as market fears subside [11].