Red Thumbs Too Easy to Find -- The Market is Overvalued
I've been adding quite a lot of red thumbs lately. Many overvalued companies are out there and I'm locking in excellent start prices on some of these. I'm inclined to say the market as a whole is overvalued. I'm still able to find reasonably undervalued stocks to buy, but the level of undervaluation is no longer as egregious and many stocks that were formerly very undervalued are now only slightly undervalued.
I only go long in real life and I'm actually still buying certain stocks (bought some stocks this week), but I finally have to say that there are way too many highly overvalued companies out there and only a few that are very undervalued.
I should say this: I don't look at the number of the Dow or the S&P 500. Determining level of undervaluation or overvaluation based on a number is utterly worthless. I'm making my "market is overvalued" declaration because I can find many very overvalued companies and just a few very undervalued companies. That's an important distinction that many of you likely ignore.
I'll also note that I'm not shorting any of my red thumbs in real life. Overvalued stocks don't necessarily go down in price very reliably, especially in irrational upswings. I choose to be only long in real life.