In our market outlook, we showed the market as a whole is more expensive than it has been at any point since before the 2008 recession. We may not be in tech bubble territory yet, but there are many “micro-bubbles” throughout the market where individual security valuations have become disconnected from cash flows.
However, the existence of micro-bubbles doesn’t mean that every part of the market is overvalued. In fact, there also are micro-bubble winners or pockets of securities that are undervalued based on overblown fears of disruption. At times, entire industries,