Depending on what kind of valuation indicator you are looking at, you can either say that US stocks are excessively overvalued or reasonably priced. It ultimately comes down to how sustainable you think current earnings numbers are in the middle term.
When making investment decisions for 2019 and beyond, we need to be very selective in US stocks, and a healthy dose of international diversification makes a lot of sense for value-hunting investors.
The Valuation Disconnect
Some widely followed valuation indicators are saying that US stocks are priced at dangerously high levels.
The Cyclically Adjusted