Could NOT agree with this more.

"The main thing that determines whether an overvalued market continues to advance, or drops like a rock instead, is whether investor psychology is inclined toward speculation or risk-aversion."

I'll talk about this issue in my soon-to-be-released investment course.

Remember, stock performance is based on three things and three things only... Earnings Growth + Dividend Yield +/- PE contraction or expansion.

PE contraction or expansion is based on the returns of risk free assets, Treasury Bills. As those returns increase, it makes one less desirous of taking risk for what could be sub-optimal stock returns, the CONTRACTING PE ratios. Will the contraction of PE ratios be overcome by DIvidend yields? Probably not.

So the thing that can save us would be earnings growth. Can you expect boisterous Earnings growth with a "green" energy agenda? Doubtfully.

Be cautious on your return projections!

https://www.advisorperspectives.com/commentaries/2024/01/02/return-buy-low-sell-high?hsid=28145844&utm_campaign=AP%20Newsletters&utm_medium=email&_hsmi=288898341&_hsenc=p2ANqtz-9aViyc7YmB7x03_eu7WrMfXuG0xXUi3nYQWkDiTtzOrk-mNxM2zvjUlC5PjitsnxAh2dbA2trdrMigZ1saiYHZynQHgPY2iRaR_NRuJV-YAst9bNY&utm_content=288898341&utm_source=hs_email