Y-Town Steel wrote:
Your could have given this information to a panel comprised of the world's greatest investors before 2016 began and there's no way they would have predicted stock markets would have been up double digits. So why waste your time trying to predict these unpredictable events?
Because markets DO follow long-run valuation trends. Bubbles and momentum are real, but while predicting corrections may be a fools game that doesn't mean you ignore asset allocation and risk. Implicit in searching out favorable buying opportunities acknowledges that some areas offer better risk-adjusted returns than others.
No one is saying you should short this or that overvalued market, but a savvy investor might look at trimming exposures.