The stock market is back at all time high. Is is time to sell stocks?
The best way to know if the stock market is expensive is to look at the alternative, that is, bonds. The yield on the 10-year US Treasury bonds are 2.5%. Good corporate bonds yield around 4%, so as long as corporate earnings can grow by more than 4% per year, stocks are a better investments than bonds.
However, we should also not invest in overpriced stocks and look for those at a fair value