The current market environment is very difficult for me as I see very little value out there. I am not opposed to paying high teen multiples for stocks if I believe the future is bright, but there are many unresolved imbalances out there that have not yet been dealt with.
There are cheap stocks out there with low price to earnings ratios (P/Es) but most of them have real issues. Many pharmaceuticals like Pfizer trade at a single digit P/Es, but have patent cliffs that likely mean that a much higher P/E is not warranted. There are technology stocks like hard drive maker, Seagate, which trades at seven times next year's earnings. However, their products might become obsolete as flash memory gains. I don't want to disparage these low P/E stocks as I have considered them both for investment, but they are not without risk. Many financials trade at low P/Es to expected earnings but I cannot get comfortable with the balance sheets. The low P/E stocks are that way for a reason and the companies with less issues tend to trade at high teen multiples.
A correction would really help from a sentiment and valuation standpoint but the market does not seem to want to oblige me. This means I will be playing defense and trying to hit singles until better opportunities arrive.