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I have no clue what will happen next to stock prices.

Others seem far more certain. Words like “speculation,” “bubble” and “irrational” are getting tossed around, including by people whose opinion I respect. But I’m not making any significant portfolio changes. Why not? Here are seven reasons:

  1. The stock market isn’t as expensive as it appears. Last year’s economic contraction hammered corporate earnings, which likely plunged 32% in 2020. As the reported profits of the S&P 500 companies have shrunk, the stock market’s price-earnings ratio—prob