After a tumultuous end to 2018, the market (S&P 500) has rebounded nicely, rising over 17% since its late December lows. However, the volatility and entrance into bear market territory has many arguing that stocks remain overvalued.
Our message to investors remains the same: there are pockets of both undervalued stocks and overvalued - or Micro-Bubble - stocks. In order to avoid these high risk bubbles, investors need to look beyond the widely-available and misleading accounting results (noise) on which most people focus. Investors need to "get back to the basics" of reading footnotes