Part 1/7:
Understanding the Current Stock Market Overvaluation
The stock market is experiencing an unprecedented surge, with the S&P 500 trading at levels we've only seen twice in the past 70 years. Many investors find themselves excited about the market's performance, with the S&P 500 gaining a remarkable 25% this past year, following two consecutive years of over 20% returns. However, historical parallels suggest that the impending correction could be catastrophic.
With this backdrop, it is essential to dissect what has led to such significant overvaluation, how long this situation might persist, and what strategies investors can employ to prepare themselves for the inevitable downturn.