There’s no question the market is seriously overvalued compared to nearly any point in its history.
- Fund of funds Business Keeps Dying
- Baupost Letter Points To Concern Over Risk Parity, Systematic Strategies During Crisis
- AI Hedge Fund Robots Beating Their Human Masters
Here's a scary fact; the only time the S&P 500 has been pricier (using the Shiller P/E ratio) is during the internet bubble mania of the late 90's and early 00's.
This Tiger Cub Giant Is Betting On Banks And Tech Stocks In The Recovery
The first two months of the third quarter were the best months for D1 Capital Partners' public portfolio since inception, that's according to a copy of the firm's August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1's public portfolio returned 20.1% gross Read More
The market is officially pricier now than during Black Tuesday - just before the Great Depression. It's pricier than it was prior to the Great Recession as well.
I would not be buying into any broad market ETF right now. You are likely to generate poor total returns by buying in at a poor valuation.
The reason why I continue to invest in individual stocks right now is because not every stock is overvalued. The market is made up of individual businesses - you don't have to buy them all.
You can be selective and choose from the few remaining high quality dividend growth stocks that are also trading at fair or better prices. Even in today's market, there are some bargains to be found.
You can't look to market darlings, however.
Most stocks that I'm interested in right now have some 'warts'. They aren't market darlings - they have a temporary issue that is depressing the valuation of an otherwise solid long-term dividend growth investment.
My 10 favorite dividend growth stocks trading at fair or better prices today are in the Sure Dividend Newsletter. Click here to start your free trial of the Sure Dividend Newsletter today.