Your Money Minute Are Stock Prices Too High 9/23/25
Sep 23, 2025
In this quick dive into the world of finance, the discussion centers on whether current stock prices are justified. Expert insights reveal that while stocks appear 'richly priced', strong earnings are keeping the market buoyant. A minor pullback is considered natural, suggesting that all-time highs may stick around unless a significant market shock occurs. The conversation also touches on the stability of retirement accounts amidst recent market highs, blending analysis with practical implications for investors.
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Stocks Are Richly Priced Across The Market
- Aswath Damodaran says stocks are "richly priced" and valuations reflect earnings, so high prices aren't detached from fundamentals.
- He notes the richness applies broadly across stocks, not just big tech.
Earnings Are Holding Markets Up
- Damodaran argues earnings have held up and are supporting current market levels, reducing pressure for a correction.
- He suggests all-time highs can persist if earnings continue to arrive as expected.
Prepare For Small Pullbacks, Not A Crash
- Expect small pullbacks as normal market behavior rather than a systemic crash unless a major shock occurs.
- Monitor geopolitical or other shocks as potential catalysts for larger adjustments.