A headline from money.cnn.com, dated October 24, 2017, read "Caution: U.S. Stocks have rarely been this expensive," the underlying article by Matt Egan. Since then, the S&P 500 Index has risen a further 4.17%, partly in anticipation of the Trump Administration and Congress successfully passing a tax bill this year. Is it time, then, to jump on the bandwagon and invest more funds, since it appears likely a tax bill will indeed become law, probably this week? Not so fast, if one would take seriously the advice from Matt Egan's piece. Yes, stocks may continue to surge, and few are for long successful at timing the end of a bull market. However, by most standards average common stocks are overvalued, so the bigger risk to investors is experiencing loss of principal, rather than missing out on the rest of this bubble.
Here are a few of the key ways to look at market valuation and what they are telling us today: