Are Stock Markets Too Richly Valued Now?

Weekly Update

Are Stock Markets Too Richly Valued Now?


Published December 25, 2020

Investors cannot help but be amazed by the stock market’s performance this year. What began as a promising continuation of a decade-long bull run quickly turned into one of the sharpest plunges in market history as Covid-19 upended economies worldwide. Shocking as that plunge was, the subsequent rebound was even more surprising, with stocks going on to record highs despite unemployment remaining extremely high and other economic indicators remaining well below their pre-pandemic levels. The record level of stock prices in the face of still-weak economic data suggests a stock market that might have run too far too fast. A couple of notable writers on investment topics in major publications have recent tackled that topic, concluding that stocks are indeed at extremely rich prices. (more…)