No. of Recommendations: 9
Why?...
A very much to-the-point question.
I think that if one is going to lighten up into exuberance (certainly not a necessity), the main thing to look at is whether you own some things that you yourself think are overvalued.
Either not really worth a lot, or worth so much less than the current quote that you have no confident prospect of an acceptable return if you hold for several years and valuations fall back to what you think is justifiable.
There are quite a few things that seem richly valued these days, but there are certainly widely varying degrees of exuberance and optimism.
I think Alphabet and Coke are currently trading at very similar multiples of earnings, for example. Might make a good long/short pair trade : )
Jim
