The market’s run has been pretty spectacular over the last few years, and it’s only gotten better since the election of Donald Trump. Stocks have surged more than 30% since his surprise election win and the unveiling of his pro-business policies. That’s been wonderful news for our IRAs, 401(k)s and brokerage accounts.
What hasn’t been so wonderful is the effect of rising share prices when it comes to a stock’s valuation. Let’s face facts: stocks are no longer “cheap.”
And it’s not just one metric that’s pointing to a stock’s potential expensiveness. Several, including three major data points, are now pointing to a potentially overheated market. The question is will it matter over the longer run?