https://totalrealreturns.com/ I always like to keep an eye on this chart just for a rough feel on how over/undervalued the market is. I'm sure it has plenty of faults, but I think it's pretty fair to say the market is in an abnormal state right now - both stocks and bonds are divergent from historic trends.
Well, sure, but it's been heavily overvalued territory for a couple years now. I'm not sure the quote about 200% is really relevant anymore, as (as far as I understand it) the "reasonable" bounds in terms of percentage are thought to increase over time, owing to increasing global trade (which of course might now be decreasing).
This says more about the value of the dollar than it says about the stock market. Of course assets are going to be overheated, no one wants to sit on cash.
Right, knowing something is overvalued or undervalued doesn’t tell you much about how to use that information. You have to be right at the right time. Right and lucky.
https://totalrealreturns.com/ I always like to keep an eye on this chart just for a rough feel on how over/undervalued the market is. I'm sure it has plenty of faults, but I think it's pretty fair to say the market is in an abnormal state right now - both stocks and bonds are divergent from historic trends.
Well, sure, but it's been heavily overvalued territory for a couple years now. I'm not sure the quote about 200% is really relevant anymore, as (as far as I understand it) the "reasonable" bounds in terms of percentage are thought to increase over time, owing to increasing global trade (which of course might now be decreasing).
The market as a whole is being driven by less than a dozen stocks. VTI is one third tech.
Many people are not as safe or diversified as they think they are.
This says more about the value of the dollar than it says about the stock market. Of course assets are going to be overheated, no one wants to sit on cash.
Right, knowing something is overvalued or undervalued doesn’t tell you much about how to use that information. You have to be right at the right time. Right and lucky.
Isn’t this a matter of the dollar losing value, and the market is already pricing you’ll need more dollars to buy the same assets?
https://archive.is/vS9YZ