Here's How I'm Managing My Million-Dollar Portfolio Amid a Historically Pricey Stock Market

Market Overview - The current stock market is the second priciest in history, as indicated by the Shiller Price-to-Earnings (P/E) Ratio, only surpassed before the dot-com bubble burst [3] - Major indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have seen significant gains in 2025, rising by 14%, 17%, and 22% respectively [5][6] Investment Strategy - The company is adopting a multi-pronged investment strategy to navigate a historically expensive market, focusing on long-term positions and avoiding impulsive trades [2][5] - There is an emphasis on maintaining core positions while increasing cash reserves to capitalize on future market dislocations [10][13] Stock Selection - The company is selectively adding to positions in firms like PubMatic and Goodyear Tire & Rubber, which are seen as undervalued despite current market conditions [17][18] - High-yield dividend stocks are being incorporated into the portfolio, as they have historically provided better returns and lower volatility compared to non-dividend payers [20][23] Risk Management - The company is divesting from non-core holdings that no longer align with investment goals, similar to corporate cost-saving initiatives [11][12] - The potential for an AI and quantum computing bubble is acknowledged, but core positions are not expected to be disproportionately affected [8]