Stocks Take Breather at Fair Value Levels, But Positives Remain as Bubble Fears Ease
-
Stocks took a breather but breadth continues to improve as equally weighted S&P 500 hit new highs. Market resembles fair value currently.
-
Technology stocks look overvalued but are supported by strong earnings growth, unlike 1990s dot-com bubble.
-
Market has positives like lack of IPO and acquisition frenzy, reasonable broad market valuations. Negatives are tech stock costs and historical precedent.
-
Still lots of cash on sidelines that could propel market higher if rates get cut.
-
Overall no sign of a bubble, but opportunities for stock pickers as market transitions to fair value.