As the Stock Market Rises, Heed This Warning From Warren Buffett
The S&P 500 is up nearly 15% this year. That rise represents the weighted average of 500 top companies, meaning it only tells part of a larger picture. Some individual stocks are carrying more than their own weight in the story, so while their specific gains might make sense, others are on their way to becoming inflated and unsustainable.
Warren Buffett has spoken out on this very topic, and he has a strong opinion about it.
Don't investors love bull markets? Of course. That's when you see the value of owning stocks. Even when the market does go into bear territory, top stocks don't lose nearly as much as they gain in good times overall.
Source Fool.com
