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Is the Bull Market Overdone?

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Craig Matters

with Craig Matters, Managing Editor Money Magazine

We’ve had quite a bull market since 2009, and stocks now appear overpriced relative to historical averages – with shares trading at about 16-times earnings, or about 30% above historical average, and at a 50% premium if you look at Nobel Prize winner Robert Shiller’s cyclically-adjusted CAPE Ratio. So this should give investors pause.

That said, younger investors have time on their side but older investors shouldn’t risk entering retirement with a beaten down portfolio at a time when they need to start making withdrawals. In addition, at times like these, one shouldn’t overlook the advantages of bonds and diversification even though interest rates are at all-time lows. It also pays to have some international diversification but with global economies in the doldrums, there’s no telling if there’s value abroad or if the knife there is still falling?

I've been an investment strategist and adviser for over 35 years, leading with a mission of unbiased advice to educate and protect listeners on my weekly radio show on NPR affiliates nationwide. I have been named a “Top 100 Wealth Advisor” by Worth Magazine and “Top Advisor” by Reuters.