Irrational is a euphemism for not understanding what one is invested in. Fine if one has the wherewithal to act very quickly either way, but deadly if not. As the market continues to find new historical highs it helps to look at the drivers and if it turns out to be a small few darlings driving the whole thing, whereas the apparently undervalued remain undervalued, that tells us that chasing value where the market doesn't see value is high risk. Even higher risk when the market is clearly stretched. I know you know this but the long road home is a lot shorter if there are no more calamities along the way.
Irrational to me in this particular case means when you compare the stocks metrics against it's peers, it says undervalued, I'm happy to back myself against the market in these cases.
I'm not sure how others are viewing the market but there is a little too much heat in it for me. I sold off one of my largest holdings today as it was way too far above fair value (as are many others). There's a chance I may regret doing this but for now, I feel better taking some profits and sitting on the sideline for a little bit to see if it cools down a little.
see anz is predicting a cut to interest rates next yr , 50% factored in a cut by mid year according to the market as well at this point in time. good for divvie stocks.
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