Why Do Stock Indexes Keep Grinding Higher?

The video discusses the valuation of US stocks, highlighting that they are overvalued or fully valued, yet indices continue to rise. The CAPE ratio is not a reliable short-term predictor but indicates lower future returns over a decade. European and emerging markets are cheaper compared to the US, suggesting international diversification. The video also covers investment strategies in a low-interest environment, recommending dividend-paying stocks over bonds due to better returns.

What factors contribute to the differences in market valuations between the US and emerging markets?

How does the speaker view the relationship between risk and return in the context of diversified investments?

What investment strategy does the speaker recommend for someone seeking income in the current market?