Originally Posted by Ardy
With all respect, there is no "proper value" of the stock market. It is frequently the case that prices rise when people say the market is over valued... and fall even when there is an opinion the the market is undervalued. Stocks are worth exactly what you can sell them for.

While that is true, there are a variety of pricing models for stocks that will show which stocks are selling for a price lower than the intrinsic value of the assets minus liabilities.

Those models go out the window in a time of panic or in a time of unexplained boom (anyone remember the tech boom?).

But why do you think that proven investors like Warren Buffett are now buying a ton of stocks??? Because today those prices are lower than they've been in a long time and they plan on holding those stocks long term.

A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb

The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond