You will (almost) never hear a Wall Street firm state that the market is overvalued. Wall Street makes more money promoting a positive outlook even if it is incorrect.
Over the last three years, US market returns averaged over 25% annually, not adjusted for inflation. (26.89% in 2021, 18.40% in 2020, 31.49% in 2019)
Over the last two hundred years, US market returns averaged about 10% annually, not adjusted for inflation.
Are we in bubble territory?
Don’t look to a Wall Street firm for the answer. See what renowned investors have to say on the subject.
The market can stay irrational for a long time in both directions. It could keep rising, it’s overvaluation notwithstanding. Grantham is involved in market timing which is generally not a good idea. However, he is a renowned money manager and for good reasons.
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