Record low interest rates translate into stock bubbles as investors seek a decent return on their investment. This means that some companies will trade at excessive valuations even though fundamentals may be stagnant or eroding. Do your research before investing and make sure that valuations aren’t too excessive. Also, it may pay to keep some cash on hand to invest during any potential corrections.
William Bias has been researching stocks since 1992 and has been a freelance writer since 2012. He employs a strategic business oriented approach to stock market investing.