Question

Are U.S. stocks overvalued?

Answer

U.S. equity valuations are above their long-term historical averages, which is worth keeping in mind. That said, elevated valuations don’t always resolve through falling prices — they can also normalize because earnings grow faster than prices, which is exactly what we’re beginning to see now. Your wealth advisor takes valuations into account when reviewing your portfolio’s overall positioning, but elevated valuations alone are not a signal to move out of the market.

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