Currently the stock markets continue their trend of overvaluation which has defined the past three years. Overvaluation doesn’t mean that a downturn is imminent. On the other hand, it implies that the stock markets are vulnerable. So we need to stay diversified, and we’ll all muddle by. This indicator has been useless for the past three years, so selling out and running away may not be viable choices. Meanwhile, there are genuine bargains in the energy and materials sectors. Also the European indices are becoming attractive. England’s FTSE 100 is trading at 3 year lows.