PC, I can't claim to see the future. The current market is suggestive of previous manias, and when the graybeards (Buffett, Templeton, etc) express concern about a "bubble" in equities, it certainly is nothing to dismiss. I do not know if or when it will end, but my study and experience suggest that buying undervalued equities is the only way to consistently make money in the stock market over the long term. Even if I am just speculating, I would rather be long stocks in a market where most stocks are in an uptrend, where P/E, P/Revenue, P/Book, and Debt/Equity ratios are all low, and the ROE is high. The current market exhibits none of these conditions. Instead, what we have is a frothy environment where ignorant people are buying stocks because they are going up, splitting, a dotcom, or all of the above.
Is this a suitable environment for investing, or just a speculative casino?
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