Do you think the stock market is currently overvalued?

[Riberet19]

Well, let's investigate this issue, I believe that the stock market is overvalued, the reasons are several, the first of all is that as we know interest rates are extremely high, and that historically has never been good for the economy in the long term, once rates begin to be lowered, the market begins to collapse and this is because, when rates are lowered, it is because the effect that was sought by increasing interest rates has already been achieved, that is, slowing down the economy and consumption to lower inflation, then it can cause a lot of damage to the economy.

Another point why I think it is overvalued is because we have 2 active wars and an extremely complicated geopolitical panorama, I think the market is not adequately pricing the events and tensions that exist in the world, how can many indexes and companies be in historical maximums with the context that we have on the table, in socioeconomic, macroeconomic and geopolitical terms?

On the other hand, I believe that the market is extremely leveraged and, I believe that this leverage at some point will have to be cleaned, which could lead to a cascade of liquidations and therefore, severe corrections in the financial market, we have not yet seen the famous recession that so many analysts and economists have been announcing for 2 to 2 and a half years, and let us remember that the recession does not arrive when everyone warns about it, but when we least expect it.

Those are my conclusions.

 

[deucher]

In my opinion, it is not so overvalued because at the end of this year all prices started to rise because the cryptocurrency also grew strongly at the end of this year. In my opinion, these are usually too high prices for shares because most of the companies of this row have not done anything and the prices are growing simply by inertia.

 

[Kane]

I cannot say about stock market in other countries but in my home country some stocks are certainly over valued. The price is primarily determined by demand and supply but the true value of stock is based on the company performance.

 

[Harry1]

I hear you. High interest rates are a red flag for me too. I remember back in 2008, things were similar, and we all know how that turned out. The geopolitical mess right now adds to the uncertainty. It feels like we're ignoring some big warning signs. I've got a bit of money in the market, but I'm definitely more cautious these days. Maybe it's time to look into safer investments or just keep some cash on hand.