Is the Stock Market Really Overvalued?

With the strong bull run in stock prices since November, we have been reading more from the perma-bear community about how overvalued the stock market is. With optimism running high among investors we think that a discussion of stock market valuations is timely. But before we get into the meat of the discussion, please understand that valuations are at best a blunt instrument for timing the market. Undervalued assets can become even more undervalued and overvalued assets can become even more overvalued. Valuation metrics like P/E ratios, etc. are best used as caution lights or measures of risk in the markets and are most effective when used by investors as a piece of the overall puzzle, i

© 2020 EMERALD ASSET MANAGEMENT, INC.

  • Facebook Clean
  • LinkedIn Clean

Emerald Asset Management, Inc. is a Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where Emerald Asset Management, Inc. and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Emerald Asset Management, Inc. unless a client service agreement is in place.