U.S. Most Overvalued Stock Market?

A recent survey released by Merrill Lynch, showed that two-thirds of global fund managers believe the US stock market is the most overvalued in the world. So, what does this mean and why does this matter? 

In the stock market world, if something is considered to be overvalued there's a high likelihood it may experience a price decline and return to a level which better reflects its financial status. 

Generally, as the market goes up, some sectors and industries become overvalued, but there are still other sectors and industries that are either undervalued or fairly valued. 

One thing that has been known to happen in the past, when a  market nears it's peak or when severe corrections come within an uptrend, you'll have a difficult time finding many places of value within the market. As we are experiencing now, not only are most all sectors overvalued including industries within those sectors, but it's becoming more difficult to find a decent value on individual stocks within these sectors/industries.

On the other hand, the survey also found that over half of them think emerging markets are undervalued. 


We are seeing more and more signs that our 5-year bull market may be coming to an end. If it does, how will it affect you?

If you haven’t already done so, it’s a great time to call our office (775) 853-9033 to check on your portfolio to make sure you will be in good shape when the markets go south.