stock market over inflated?

[The motor guy]

What's up with the stock market? I've been looking at several stocks lately and they all have either stayed fairly steady or increased by 100 percent in the last 5 years. Is that normal or is everything just over valued/inflated?

 

[JohnnyJohnson]

YES!

 

[RamFan]

A big correction, possibly recession is coming. Hold steady and ride the wave. Pick "smart" investments and when the bottom drops out, buy, buy, buy!

 

[cashmoney]

I know enough about finance and economics to state unequivocally that I have no idea if the stock market is too high or too low at this point in time. Anyone that tells you they know what direction the stock market will be going this week, this month, or this coming year is either a liar, a fool, or both.

Don't worry about the short term, it is just noise for fools. Invest 15% of your gross pay in the stock market in a Total Stock Market Index fund (meaning extremely diversified and very low cost on fees style fund) and do so on a regular periodic basis (like every month) for the next 30 years or so and you will likely retire as a very wealthy person. It is a waste of time and energy trying to understand/predict short term market valuation and possible direction.

 

[The motor guy]

Yeah it's a long term investment. People freak out when their stocks drop and sell them, when in a couple weeks it could be back to where it was originally or higher.

 

[ZeeOSix]

The stock market is too influenced by positive and negative hype, and big day traders reacting to all the daily retoric.

 

[The motor guy]

I suppose you could make a living watching the stock market and constantly buy/sell everday. Not sure how that works though.

 

[Warlord]

Overvalued yep. Doesn’t mean anything is gonna happen anytime soon. Lots more deals to be had on the TSX right now.

 

[Mr Nice]

Originally Posted By: cashmoney
I know enough about finance and economics to state unequivocally that I have no idea if the stock market is too high or too low at this point in time. Anyone that tells you they know what direction the stock market will be going this week, this month, or this coming year is either a liar, a fool, or both.

Don't worry about the short term, it is just noise for fools. Invest 15% of your gross pay in the stock market in a Total Stock Market Index fund (meaning extremely diversified and very low cost on fees style fund) and do so on a regular periodic basis (like every month) for the next 30 years or so and you will likely retire as a very wealthy person. It is a waste of time and energy trying to understand/predict short term market valuation and possible direction.


Yep. + 10000000000%
Nobody knows the direction of where it will go.

I do know some people are bitter that didn't invest money in a 401K or IRA and drooling for a crash...

 

[CincyDavid]

I'm more troubled by rising interest rates than anything. While it's great that my high yield savings account has gone from 1.5% to 1.8% in the past 90 days, that isn't happening in a vacuum, so other rates are rising too. The remainder of 2018 and 2019 could get interesting. The bull market won't last forever.

 

[Danno]

Held onto stocks in 2000 for the dotcom bust and 2009 during that bust.
Did alright over the long term.

 

[WyrTwister]

I have seen the stock market crash 2 or 3 times . If I had paniced and sold out , I would have lost my shirt .

Could not afford to sell .

At my age , I am mostly out of the market . Too old to wait on a come back if it crashes again .

In hind site , when I bought a little metal in 1999 , I should have invested every cent I could beg , borrow or steal in precious metals .

 

[mbacfp]

Definitely on the "rich" side of the valuation spectrum. Still believe the market has more to run before next recession. Though, even with that said, I have been reducing my risk slightly this year. Volatility should pick up closer to the elections...I hope...I am waiting to pounce.

 

[oilpsi2high]

The warning bells have been sounding for quite some time now.

For retirement, stay the course. If you have a taxable account earmarked for a specific goal (car, house renovations, etc.), now is the time to take those earnings.

My .02.

 

[BrocLuno]

Of course it's overinflated, but it's the best/biggest casino in town - so enjoy.

I'm down ~8% from my high, but still at the table. You can't win, if you don't play

 

[mbacfp]

+1 BrocLuno...with a Gov't borrowing close to 40-50 cents on every dollar it spends isn't a formula for true wealth creation for a Country or an individual. You have to learn to invest within the system whether healthy or not. Learn to be in when the getting is good and get out before the house of cards falls...very simple.

 

[WyrTwister]

Simple . Buy cheap and sell high . But not necessarily easy .

Kind of like quitting smoking . Lay them down and do not pick them back up .

Again , not easy . But that is the way I quit , in the early 1980's .

 

[Wolf359]

Originally Posted By: WyrTwister
Simple . Buy cheap and sell high . But not necessarily easy .

Kind of like quitting smoking . Lay them down and do not pick them back up .

Again , not easy . But that is the way I quit , in the early 1980's .


Yep, same as losing weight, very simple, don't eat as much. But 50% of the population is overweight.

Easy to say, hard for some to do.

 

[Mr Nice]

Originally Posted By: motor_oil_madman
What's up with the stock market? I've been looking at several stocks lately and they all have either stayed fairly steady or increased by 100 percent in the last 5 years. Is that normal or is everything just over valued/inflated?


Which companies were you looking at ?