The US stockmarket is a bubble. So is it time to sell?

The US stockmarket is overvalued and there are many better opportunities elsewhere. So should you dump your US stocks and go after them? John Stepek explains why the US is so dear, where else looks tempting, and what you should do now.

New York stock exchange © Kena Betancur/Getty Images
US stocks are overvalued © Getty
(Image credit: New York stock exchange © Kena Betancur/Getty Images)

One of my favourite analysts – Jeremy Grantham of US asset manager GMO – has come out and blasted the rally in the US stockmarket. “I have been completely amazed”, he told CNBC. “This is becoming the fourth real McCoy bubble of my career.”

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.