Is the Stock Market Overvalued?

Capitalist Investor

Capitalist Investor
Is the Stock Market Overvalued?
Feb 10, 2020 Episode 2
Mark Tepper

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Some of the top questions we get from clients regarding stock market valuation are, “Is the market overvalued?” and, “When is the bull market going to end?” Many DIY investors think investing is easy because they find one nugget that they think unlocks all the secrets to successful stock market investing. But, if you’re oversimplifying the process by only looking at one data source, commonly the PE (Price to Earnings) Ratio, you’re going to think the market is overvalued and you may sell prematurely.

In this episode, we’re going to review the current climate of the stock market and talk about how you can measure the value of your investments. Get the right plan in place with a strategy for investing in the stock market that will be in your best interest and ensure long term financial success for yourself.

Outline of This Episode

[1:40] What is the PE ratio?

  • [4:48] How are stocks valued?
  • [6:15] Look at the equity risk premium.
  • [10:22] When is this bull market going to end?
  • [15:49] What investment strategy will be in your best interest?

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