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You state: ".....the eight previous times that cash peaked compared with the market’s capitalization, the S&P 500 rose an average 24% in six months". It would have been enlightening to specify these eight occasions, and to comment on the similarity (or lack thereof) between them and the current situation.
Jan 13 08:38 am
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All Comments by prudentinvestor »High Cash Levels and Your Portfolio [View article]
From my perspective, the market is just returning now to the vicinity of its long-term trends, simply recovering from the era of the Great Bubbles; as discussed in today's article by John Lounsbury
seekingalpha.com/artic...
For the first time since 2003, there have recently been, and are now, some good valuations in stocks, but I would not call the overall market valuation compelling or cheap. It would not surprise me at all if five years from now, the market is at levels very similar to today's. This would be a departure from what happened after big drops of the past twenty years, but history does not always repeat itself.