Investors Consider Next Move as Signs of a Bubble Mount
Despite some classic signs of froth, investors are uncertain whether a downfall looms
PUBLISHED : 2 FEB 2021
https://www.bangkokpost.com/business/206104...-a-bubble-mount....For once, everyone seems to agree: Much of the market looks like it's in a bubble.
...high valuations alone don't necessarily mean the rally is near its end, investors say.
...timing of a market top is difficult. "We know each bubble is a little bit different and, with the help of new trading platforms and the internet, it could set more records."
....Jerry Braakman, chief investment officer of First American Trust, says his company, concerned about stretched valuations in the U.S., has been gradually shifting more money into stocks elsewhere.
Lately, "the market has not been correlated to the macro picture," he said.
....At first glance, investors' go-to for measuring valuations, price-to-earnings ratios, suggests the market looks expensive.
The S&P 500 currently trades at 22 times projected earnings during the next 12 months, not far off from the 25 times the index traded at in 2000, just before the dot-com crash, according to FactSet.
But that's only part of the picture. That level looks less concerning once low interest rates and earnings, which are expected to grow, are factored in, several investors and analysts said.
One simple explanation for why investors haven't pulled back more?
"We've seen it in the past -- if you think you have a bubble and sell too soon, that can be a very costly trade," said Mr. Braakman of First American Trust.Â

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I guess it depends on personal risk appetite and overall % of net worth that is commited to UT/Equities now to decide whether to trim holdings 🤔