There is no shortage of pundits, advisers, analysts, strategists or alarmists who warn that stocks are overvalued and that a sizable setback could occur at any time.
Sure, something could occur at any time, or no particular time, simply because stocks are volatile and subject to the discontinuous ebb and flow of investors’ risk appetites that can change on a dime. Nonetheless, stocks aren't badly overvalued. Rather, they seem reasonably close to fair value. As for the future, many factors may emerge that can increase or decrease the attractiveness of stocks, albeit with more potential positives than negatives. So on balance, there's reason to be cautiously positive on the equity-market outlook.