[kuya11]

If you are investing on the short term, your instinct is correct that stocks are overvalued right now. For the S&P, the all-time historical CAPE mean (a ratio of price to inflation-adjusted earnings average) is 16.78, and we closed last week at an estimated 35.58. This is the second highest CAPE in stock market history. In other words, the market can be said to be 2x overvalued compared to what we would expect it to be based on earnings. To return to the mean, earnings need to double or prices need to halve.

If you're investing for a decades-away retirement, it's always fine to jump in at any time. My allocation is simple: 100% total international stock (I used to be 50/50 US/international but I'm accounting for US CAPE right now). I only plan to diversify out of stocks in the far future. I am diversifying across time.