Hypothetically, you could short overvalued companies. But you might be better off finding a value-oriented ETF that simply excludes high-multiple growth stocks

Hypothetically, you could short overvalued companies. But you might be better off finding a value-oriented ETF that simply excludes high-multiple growth stocks. Blue chips and dividend stocks, perhaps. But this is very simplified advice. You may want to buy a couple hours of a fiduciary advisor's time if you want to seriously pursue that strategy. Most folks will simply ride the top x-hundred companies, let their returns get padded in the good times and take the drag in the bad times as growth stocks rise and fall. Over decades, this strategy backtests pretty well.