November 6, 2025
By Peter Bower
It is getting harder to push the boulder higher up the valuation hill. Price-earnings ratios are already stretched and reflect a lot of good news along with hopes for more. Are we in for a correction? Perhaps, but a short reset is more likely. There is just too much investable money around, the economy is still expanding, and we are in the historically strong period of the year for good returns. We should stabilize soon.
However, taking some profits in extended positions makes sense. This amounts to reducing some of your most successful positions. All trends come to an end, and tomorrow’s winners may not be the same ones as today’s. Make room for other possibilities. This does not need to be an all-or-nothing decision. Clip off a portion and reassess. Keep a little cash for one of those soft pitches that the market sometimes throws. Stay steady my friends.
-The Lonely Bull
