The stock market is, at the moment, at its third most expensive in history. The 1999-2000 dot-com bubble and 1929 crash were periods when the market was more expensive, but that’s it. To me, the market as a whole is significantly overvalued. That means many of the stocks that help form the major indices are overvalued as well.
Long-term diversified investors need not be concerned with this, assuming “long term” truly means at least 15 years, such as those interested in my stock advisory newsletter, The Liberty Portfolio.
Another strategy The Liberty Portfolio uses is to sell covered calls against stock, which is a great way to not only generate income, but to hedge a little of the inevitable downside. Sure, these stocks could get called away, but I frankly don’t think you’re missing much short-to-medium term upside.
The market may keep going up, but I believe it will revisit these levels (and lower) down the line.