Stock market is overvalued
both on buffett indicator market cap/gdp or the shiller pe they suggests the market is overvalued by at least 30pc. And this is the results of excessive leveraging where you have lot of money available in the market.
There's no problem if stock market is ever increasing and I doubt this is the case. If major collapse happened ... ppl will suffer to closing positions.
Piece of advice, on average a stock is only fairly priced if the price is at least 30pc lower than the 52 week high price ... otherwise prep cash and wait for corrections.
There's no problem if stock market is ever increasing and I doubt this is the case. If major collapse happened ... ppl will suffer to closing positions.
Piece of advice, on average a stock is only fairly priced if the price is at least 30pc lower than the 52 week high price ... otherwise prep cash and wait for corrections.
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CMO170 : it has been over the top for a while, but that doesn't mean their has to be pop in a bubble or anything. we can continue to ride up with small set back corrections along the way, while recovering to new highs after. and historically their is always going to be another major stock market crash every so many years, but also historically the nasdaq has always risen to new highs...being overvalued has just become the normal way things are. it just be called valued at this point lol. not exactly over if we continue to bounce back high and high always. as far as companies over valued, well thats because investors belive in their long term growth and are willing to put in more money on them to keep profiting on their gains..