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"Proper valuation" is the current market value at any given point in time. A market is created when willing buyers and sellers are brought together to exchange goods and services. The value of the market is determined by what the buyers and sellers consider a fair price for goods and services exchanged. Whose to say that a good or service is overvalued if informed buyers and sellers are willing to pay and sell at an agreed upon price.
The question as to whether the bubble is ready to burst is particularly relevant to an individual's time horizon. We know that long term the market has provided investors on average a ten percent (10%) return on investment. Now, if you have a long time horizon, meaning that you are investing over the long term (Seven to thirty or more years)your personal investment portfolio could withstand a bust. Long term you have time to recover and recoup a decent return. I bet the people that jumped off buildings in 1930s wished they had stayed to play in this market.
On the other hand, if you have a short time horizon a bust could cause considerable harm to your financial well being, depending the degree of market exposure. Having said that, whether you are a short or long term investor, a stock market bust, especially if protracted would cause considerable pain to the U.S. and global ecomonies.
The stock market is a barometer of the future. To invest in the stock market provides an equal opportunity to share in the tremendous wealth produced by technology and other industries.
People should take full advantage of any opportunity to invest in the market, i.e employer sponsored 401k plans, IRAs, stock investment clubs, etc.
Don't be fooled by chicken little.