In a recent article published on Forbes, William Baldwin says that in his opinion stocks are 43% too expensive. Shiller Ratio is signaling that stock prices are too high. Most investors are dismissing the warning and still believe that stocks will make them rich. Does this mean a crash is coming? Most probably not. This only means that over the next decade stocks are going to disappoint the investors. The Shiller Ratio sank into the buy territory in 2009. Since then stocks have more than doubled in prices. Now it is screaming sell. You can read the whole article here by William Baldwin a Forbes Contributor who believes that it is hard but not impossible to beat the markets.
Buy and hold strategy maybe dead now. Markets are too volatile for the buy and hold to work effectively as it used to work in the past. Diversify your stocks and hold them. Rising tide will raise all boats. This was the philosophy behind buy and hold. However, day trading and options trading is gaining ground meaning if you are a short term investor trying to profit from the market volatility you can win. This is what Jeff Kohler a maverick options trader is doing. He is the head trader at Trading Addicts and teaches how to trade options profitably like a pro. Not only this he helps the Trading Addicts Members make money which is something good. You can try Trading Addicts for 5 days for $5 only.