You may have seen recent headlines indicating the potential for a stock market bubble.¹ Valuations are historically high, with metrics like P/E ratios, the Buffet Indicator, and equity risk premiums all flashing red.
But here’s the twist: high valuations don’t necessarily mean it’s time to sell everything. History shows that markets can continue climbing even in bubble territory. Timing the top is nearly impossible.²
Instead, we believe in a disciplined, active approach — one that uses technical indicators and risk management tools to formulate an approach designed to help participate in gains while protecting against downturns.
Our strategy is simple: stay invested while the trend is strong and reduce exposure when signals turn. This way, we aim to capture most of the upside and limit the downside.
If you’d like to discuss how this approach may fit your portfolio, let’s schedule a time to talk.
Warm Regards,
Brent George
Past performance is not a guarantee or reliable indicator of future results.
There is no assurance the strategy discussed will yield positive results and may not be appropriate for all investors. Investing involves risk including possible loss of principal.
Sources:
¹Advisorpedia, “The Bubble is Real — But Is It Time To Sell?”, Michael P. Lebowitz, Sep 4, 2025
²Real Investment Advice, “Market Valuations Don’t Matter…Until They Do”, Lance Roberts, Aug 23, 2025
Definitions:
Price-to-Earnings ratio (P/E ratio), is a simple financial metric used to evaluate a company’s stock price relative to its earnings.
The Buffet Indicator is a ratio that compares the total value of the stock market to the size of the economy (GDP) to gauge whether the market is overvalued or undervalued.
Brent R. George, ChFC®, AWMA®, AIF®, CFP® is a registered representative of and offers securities, investment advisory, and financial planning services through MML Investor Services, LLC, Member SIPC, 100 Sterling Parkway, Suite 307, Mechanicsburg, PA 17050, Tel: 717-791-3300.
