If You're Worried About a Correction, History Says This Portfolio Move Has Never Once Failed
The S&P 500 is considered overvalued by two time-tested metrics.
Overview
When it comes to the stock market, history may not repeat itself to a "T," but it often rhymes in ways that unsettle even the most confident investors. Markets tend to climb higher on waves of optimism, only for familiar pressures to reappear in new forms.
At recent prices, the S&P 500 (SNPINDEX: ^GSPC) sits around 7,670, a level that towers over the records of prior decades. After years of outsize advances, the index has delivered a roughly 12% gain this year. Yet the backdrop of this ascent includes lingering uncertainties about inflation, the Federal Reserve's next move on interest rates, and the ongoing Iran conflict.
Details
Against this multi-year rally, the possibility of a correction is beginning to feel less like distant theory and more like a reality waiting to play out.
Source
Originally published at www.fool.com.