Prof G Markets

The Whole Market Looks Expensive — Is it Time to De-Risk?

217 snips
Nov 17, 2025
The hosts explore the notion that the stock market currently offers few safe havens for investors. They discuss the high-stakes AI race between China and the U.S., highlighting innovative startups aiding China's progress. The conversation shifts to the worsening housing crisis, debating whether new 50-year mortgages can provide relief or merely prolong existing issues. Ultimately, they advocate for increased housing supply as the key solution to the problems at hand.
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INSIGHT

Market-Wide Overvaluation Warning

  • Aswath Damodaran believes there's currently "no place to hide" because many asset classes feel overvalued.
  • He suggested cash and collectibles as potential havens given stretched valuations across stocks and defensives.
INSIGHT

Elevated CAPE Implies Risk Of Long Weak Returns

  • The Shiller CAPE is near levels that historically preceded poor 10-year returns, matching peaks in 1929 and 2000.
  • Market highs can unwind slowly over years rather than in a single crash, producing multi-year or decade-long weak returns.
INSIGHT

Real Estate As A Relative Haven

  • Damodaran sees real estate as a possible risk-adjusted value play due to a structural housing shortage of 2–3 million homes.
  • REITs and direct property purchases could serve as alternative exposure amid stretched financial markets.
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