With major stock market indexes perched at record highs, some observers say equities are vastly overvalued.

But CNNMoney columnist Paul La Monica doesn't see it that way.

"It's tempting to declare that stocks must be on the verge of a colossal correction, or worse, another brutal bear market like 2000 and 2008," he writes.

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

"But if you look at the list of stocks hitting all-time highs, I'm not so sure that this market feels as 'toppy' as previous bulls. You can't really claim that stocks are being led higher just by speculative, overvalued companies."

There are some technology companies, such as Pandora, trading at stratospheric valuations, La Monica notes. Pandora's price-earnings (P/E) ratio, based on profit estimates for the next fiscal year, stands at 115.

"But for every tech stock that has a C+C Music Factory-esque valuation that makes you go hmmm, there are several more boring, blue chip, dividend-paying stocks at reasonable prices that are also at record highs," La Monica explains.

For example, Anheuser-Busch, 3M, CSX, Lowe's, Procter & Gamble and UPS each hit all-time peaks Thursday. But they all have reasonable P/E ratios in the mid-to-high teens, he notes.

"This bull market doesn't reek of wretched excess as much as the ones in 1999 and 2007 did. Many companies are sitting on mountains of cash. Many have taken advantage of this unprecedented period of super-low interest rates to refinance their debt. Corporate balance sheets are healthy," La Monica states.

"This doesn't mean that there won't be a market pullback anytime soon. But it could be brief and not herald the start of another bloodbath. It looks like bears remain in hibernation and the bulls are . . . wait for the Rage Against the Machine reference . . . still on parade."

Abby Joseph Cohen, senior investment strategist at Goldman Sachs, is also bullish on stocks. She predicts the Standard & Poor's 500 Index will hit 1,900 by year-end, up 6 percent from Thursday's close of 1,791.

"Companies right now are increasingly enthusiastic about the dynamism in the economy," she tells Bloomberg. "There's value in the market right now. The U.S. economy will likely grow faster next year."

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

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