Believe it or not, high valuations aren’t what causes a stock market bust. The real cause is simple… Stock market busts begin when folks stop buying and start selling.
Now, that might happen because of economic turmoil or an unexpected black-swan event. But investors never wake up en masse and say, “Wow, stocks are just too expensive… better sell.”
Just about everyone knows that stock valuations are high right now. Plenty of investors are worried. But getting scared just because valuations are high is the wrong move.
Today, we’ll take a walk through the 1990s boom to see what I mean…
This post originally appeared at DailyWealth.