You can call it herding, momentum or investors just investing with their eyes firmly fixed on the rearview mirror. Whatever the label, it is no surprise that as the S+P 500 hit near an all time high, investors suddenly have a renewed appetite for stocks. Reports in the NYT and WSJ wrote of renewed interest in stocks among individual investors.
Equity Funds Set For Record $55B Monthly Inflow: TrimTabs
A widely used measure of stock market valuation based on long term data is the schiller pe ratio.
As can be seen below
... while certainly not in bubble territory the stock market measured by the schiller p/e is certainly not chearp. Based on shorter term data based on current earnings the p/e of the sp 500 is now at 17.49 around 13% above its long term mean average of 15.49. While I wont make a market prediction it's safe to say that those who are piling into stocks now are not buying into a cheap market.
..In other words buy and hold ...or more precisely buy a balanced portfolio and rebalance is not "dead"...and in my view market timing was never viable.