What do you do when you perceive the market as over-valued?


Disclaimer: cashed out after a big gain filling a surge in my largest holding (NYSE: SPR) and feeling a bit uneasy in redeploying cash.

I want to deploy my cash however most equities that I find interesting are trading close to ATH.

I have been having the following conundrum where I find myself in the following scenarios:

1) stocks which I have a large conviction on, meets my screener however are trading at great multiples close to ATH

2) beat up stocks which may not fit my screening criteria – examples can be Pharma/Utilities/REITS. Reversion to mean would tell me there is some room to grow subject to macro factors

I tend to only invest in stocks where I can comprehend possible movements

Do you ever sit on the fence at all or do you find the need to keep all cash invested (even if it’s just a SP500 etf regardless of price?)

May I ask what do you usually do?


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