It seems to me that “cheap” must be a relative term.,compared to what?
IMO stocks are best compared not to themselves in the past, but rather to alternative investments.
Go to the grocery and both are seen in shopping behavior. You might buy more apples when they are cheaper than last week, because that is where you anchor. But at some point you start comparing them to other fruit. The twist here is that unlike apples, people seem to want to buy more stocks as the price goes up. Until they don’t.
Stocks- ¿cheap or expensive?
Some are cheap. Some are expensive. It’s not as if all stocks march in lockstep. Each investment deserves individual attention.
As a part of strategic diversification I index part of my portfolio. And market time part of it.
Re individual stocks- I am not finding many that are bargain basement cheap today. Or few financially strong companies with a good moat suffering one time events like the American Express salad oil scandal
I have come to the general conclusion that one time events like that in big strong companies with a moat, and the very bottom area of bear markets (when almost all stocks are marching in lockstep) are the very best low risk high return times to buy stocks. Blood in the streets stuff…