Are markets too greedy?

THERE are increasing signs of investor euphoria globally, most notably in the semiconductor space, and especially in South Korea and Taiwan. In these two markets in particular, there has been a sense among investors that stocks can only go up.

As a battle-hardened investor, I worry that we are getting closer to the peak of this sentiment. At the same time, I recognise that this euphoria can continue for longer than expected. So, what should investors do?

The answer is that they should strike a balance. We do not know when the bull market will experience a significant correction or transition into a more sustained bear market, but investors need to actively prepare for that possibility.