The analysis needs to factor overall market earnings [1]. It is more level-headed to look at the S&amp;P 500 P&#x2F;E ratio, which does show a historically over-valued market, though not dramatically over-valued at this time [2]. S&amp;P 500 overall earnings hit all-time highs in 2013 and 2014, but have fallen back somewhat in 2015.<p>So it&#x27;s a pretty safe bet to short, if that is one of your investment tools. But I don&#x27;t think you&#x27;ll really make a killing, unless earnings decline substantially. I&#x27;ve chosen to just divest stock-based investments and increase cash somewhat, and then cherry-pick value in dividend stocks.<p>[1] <a href="http:&#x2F;&#x2F;www.multpl.com&#x2F;s-p-500-earnings&#x2F;table" rel="nofollow">http:&#x2F;&#x2F;www.multpl.com&#x2F;s-p-500-earnings&#x2F;table</a><p>[2] <a href="http:&#x2F;&#x2F;www.multpl.com&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.multpl.com&#x2F;</a>