Apple Inc. (AAPL), The Walt Disney Company (DIS): A Trio Of Things That Can Go Right in 2013

3. Stocks can move even higher
A common reaction to rising prices is that a correction or perhaps even a crash is coming. Yes, the market’s been hot. The S&P 500 has soared more than 150% since bottoming out four years ago. However, the folks who were calling for cascading share prices in 2010, 2011, 2012, and now 2013 have all been proved wrong.

There’s no doubting that a correction will come. It may even be uglier than just a correction. My point here is that a lot of people have left a lot of money on the table by assuming that stocks are too expensive.

They’re not, by the way. Yes, the S&P 500 is trading at a seemingly rich 18.6 times trailing earnings. We’re not at the insane heights ahead of the bursting of the dot-com bubble a dozen years ago, but we’re certainly at the high end of the historical range. However, if this economic recovery is for real — and corporations are about to usher in an era of expanding profitability — the market may not be so expensive after all.

Yes, investors need to be careful out there, but don’t be afraid to let your inner optimists come out from time to time.

The article 3 Things That Can Go Right in 2013 originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz owns shares of Walt Disney (NYSE:DIS). The Motley Fool recommends and owns shares of Activision Blizzard, Apple, and Walt Disney. 

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