The narrative that the stock market is at record highs is incredibly misleading.
The dollar has reached record weakness.
Trading dollars for a share of a company who is expected to return more dollars is remarkable silliness.
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To say that a stock is at a record high the metric you should look at is price of the stock divided by the earnings the stock is expected to generate in the future. Earnings the stock is expected to generate in the future is a forecast and it’s going to be subjective. You can use trailing earnings, or shiller earnings as a proxy, or try something more complicated.
Stocks are at a high though not a the highest they have ever been. Therefore they are overvalued by this historically looking metrics. In order to believe they are not overvalued someone needs to believe the earnings in the future will be about double what they currently are generating. And the narrative you may hear for why earnings will be double in the future compared to what they are currently is beliefs about AI and its impact on efficiency.
Perfect example of why I buy Bitcoin 😁
Well, when you’re forced to contribute a portion of your income to a retirement plan that invests in the stock market, what else can you do? (and yes, for some industry sectors, contributions to either a pension fund or retirement plan are necessary non-negotiable terms of employment)
Contribute the bare minimum, teach others, and advocate for their dissolution is my approach. 😁