The stock market is overvalued, but that’s no reason to turn bearish, analyst says

• Piper Sandler advises against selling stocks despite an 8% overvaluation in the S&P 500.
• The firm sees no immediate catalysts like surging interest rates or inflation to trigger a downturn.
• Investors should focus on stocks with strong earnings momentum for outperformance, the firm said.

Investors worried that the stock market is overvalued shouldn’t sell stocks, according to a Monday note from Piper Sandler.