I don’t short. Ever. My bet against overvaluation in the stock market is just to own safer and/or cheaper assets. Although, truth be told, I don’t invest much in stocks anyhow, so there’s that. I generally find the major indices to be useful only as signals – I don’t give them much thought outside of the extremes (eg, now). Right now, I have a lot of cash, some outstanding RE loans in Texas (1st trust deeds), some foreign RE, a few private bank investments, some emerging markets equity funds (hey, there are some stocks!), and some venture capital. It’s just a hodgepodge of stuff I like and am comfortable with.
I’m generally early (re: wrong) regarding bubbles… but my bet is this one pops sooner (say, within the next year) rather than later. But, alas, the exact timing is always precarious and rather pointless in trying to predict…
