The Stock Market Is a Bubble. How It Might Deflate—in a Good Way.

There’s more than one way to deflate a bubble.

Nothing, it seems, can keep the major indexes down for long. The S&P 500 gained 0.9%, to 4436.52, while the Dow Jones Industrial Average rose 273 points, or 0.8%, to 35,208.51, as both indexes closed the week at all-time highs. The Nasdaq Composite didn’t end at a record, but still gained 1.1%, to 14,835.76. It was strength all around.

All…

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