Investors face reckoning as stock market has worst week since beginning of pandemic (msn.com) In what year is the stock market overvalued? 1986? Part of the reason that I don't see a problem is that with inflation the market prices may seem high, but inflation causes the dollar amounts to be worth less. So, the stock market is not overvalued. It's self-correcting through inflation while standing still. Am I the only one who sees this?
You forget the mighty influence of the Federal Reserve because the Federal Reserve prevents free markets from correcting the stock exchange, for example, due to high rates of inflation. The stock market is highly overvalued, IMO, right now due to inflation. Your investments like CDs, bonds, precious metals, etc., are highly undervalued because the Federal Reserve has its boot on the throat of the Prime Interest Rate which is good for the administration but not good for non-stock-market investors. Besides, it's real hard to gain from any kind of stock market investment (any investment right now) because that gain doesn't keep up with the reported annual rate of inflation of 7%.
