Here's why the US indices are overestimated (1)

Today, US indices rose to new historical records, following expectations for a recent introduction of US tax reform. Now, however, it is entirely possible that they are in overpriced territory.
Indeed, the broad S&P 500 index is close to the next psychological limit of 2,700 points. And this level is only 4% of the consensus opinion of the analysts for an index value of 2,800 points by the end of the year.
In other words, most of the market participants do not count on a significant increase in the index next year. By comparison, if the current S&P 500 index ends the year at current level, it would be an increase by over 20% for the year.
On the other hand, investors are good at following the "buy news, sell rumors" principle. That is, a very good time to get out of the market could be - the adoption of tax reforms. This may give the final impetus to the indexes that will lead them to new peaks that will last for a long time.