1) adjust 1987 for inflation/int rate environment etc and youll...

1) adjust 1987 for inflation/int rate environment etc and youll probably find that it was waaaaaaay overvalued compared to now

2) during a recession prospective PEs are around 10; during boom around 20; so fair value is around prospective 15; avg for aussie mkt is 18 historic

So we're not THAT overvalued given the macro environment; PEs at this level are toppy but not extreme as economy is very very robust. As long as EPS can keep growing in double digits, PEs around 18-20 are OK by me.

3) you ALWAYS need to 'discount' your portfolio by 15-20% anyways. If you have 100,000 in long term portfolio, its really worth 80-85K adjusting for 'risk'.
I always look at my long term portfolio which I aint selling, and say to myself, its really worth 20% less at any given point.

4) u can do a few short term - med term trades in between corrections to make up the lost 20% off long term portfolio. i.e buy options/warrants after major correction or ASX200 options/warrants and hold all the way back up to parabolic level

5) S+P 500 whether anyone likes it or not is heading to all time high and nothings gonna stop it

6) one day china stockmarkets gonna crash and if youre in metals youll understand why I say youve always really got 20%-25% or so less in your portfolio than you think you have.

ride the market for as long as you can during the bull, and whatever youve got at 'the top' when the bull ends discounted by 20-25% is still waaaaaaaaaaaaaay more than what you started with at the beginning of the bull.