There are indications that the market overall is very overvalued - but some stocks are overvalued and some are not. One way to gauge if a stock is overvalued is to take a look at the forward PE and PE/Growth. These are based on analysts' estimates and yes sometimes they are wrong to the downside. If you set up a portfolio on yahoo finance you can add those parameters and more looking for stocks that meet your criteria. There are value investors and growth investors, and a few more. I am a growth investor and the best advice I ever received was to look at trends of the future, and invest in large cap stocks which will dominate that future growth. I have made a lot of money off of NVDA and plan to make a lot more. But there are other stocks which are involved in AI which have much better valuation metrics. Regardless of what type of investor you are set up a portfolio to look at forward PE and PE/G. If there is a downturn then stocks with lower PE will not be hurt as much and if not, are more likely to rise to the average of their peers. Also, the long-term value of companies is ~ zero - no such thing as buy and hold forever. Look at GE and now Boeing. Don't become emotionally attached to a stock. Sell the poor performers at a loss and invest in those companies winning the future.
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