No. of Recommendations: 0
S&P 500 is easily overvalued.

But then again so's the whole stock market, and it has been for most of history.

That hasn't stopped the market from making money in the past. Maybe it will in the future as well.

I'm not going to put all my eggs in one basket (bonds may beat stocks in the long term going forward, so I have some bonds) but since stocks seem to be the best inflation hedge of all, I want to at least have some of my investments in stocks, even though I think they are overvalued.

I'd place my bet on "fool effect", but extend it to all the "newbie-friendly" investment advisors. The Fool is not the loudest or largest proponent of VFINX. Listening to such advice, the great ignorant masses have merely replaced one kind of ignorance ("do whatever the broker says") with another ("even if you don't understand stocks, just buy S&P 500 and your future is assured").
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.