Investor Keeps Cash and Winners as Shiller P/E Hits 42

1 articles · Updated · The Motley Fool · May 13

Shiller P/E near 42 — a level last seen in the dot-com boom — is driving one investor to shift into a more defensive playbook without exiting stocks.
Three moves anchor that strategy: keep high-growth holdings such as AMD and Shopify, hold liquid reserves in cash and gold, and keep hunting for cheaper names.
AMD’s revenue growth is tracking roughly a 35% annual target, while Shopify’s broad e-commerce ecosystem underpins the case for letting expensive winners run despite P/E ratios above 140 and near 100.
Liquidity is central because sell-offs can create rare entry points; Berkshire Hathaway’s cash pile above $397 billion is cited as a model for buying during downturns.
Bargain hunting still matters in a frothy market, with Clorox highlighted for a 14 P/E and roughly 5.6% yield versus the S&P 500’s 1.1% average.

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