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Author: AndrewXnn Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75384  
Subject: Market Valuation Date: 4/12/2012 2:34 AM
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The Wall Street Journal recently ran an article suggesting that the market is fairly valued.

http://online.wsj.com/article/SB1000142405270230475040457732...

Naturally, there are a spectrum of opinions on this matter, but my impression is that this is a basically correct statement within the range of uncertainity that accompanies such measures.

This is not a sell signal. However, it does in my mind suggest that a broadly diversified mutual fund is not likely to be priced as a particularly good bargain for buying or selling at this time. However, substantial advances in the market without corresponding improvement in the fundamentals should be viewed as potential exit points for such funds.

Interestingly, real interest rates are now slightly negative. Also, according to the WSJ, European markets may be a better choice vs the US. Stocks in Europe are far better priced; mostly due to the debt crisis. So, perhaps exiting US equities in favor for Europe funds would be a wise move. That is it is a better time to trade than to exit.

Individual stocks on the other hand need to be evaluated on a case by case basis. Bargains may be found as well as inflated prices.
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