Introduction: Irrational Exuberance Ultimately Leads to More Volatility
Having benefited from the parabolic rallies in, for example, ServiceNow (NOW), and Adobe (ADBE), we felt it's time to start rotating into minimum-volatility stocks that have seen stable earnings multiples over time. As Dividend Sensei wrote a few weeks ago: "we're witnessing the most extreme valuations in 18 years, topped only by the reckless speculative mania of the tech bubble, which smashed the retirement dreams of millions."
As the overall market is highly dominated by tech companies, we should question the idea of