S&P 500 hits record high even as investors say stocks too expensive

Markets rose on Tuesday.

The S&P 500 rose 0.5 percent to close at a record high while the Nasdaq Composite rebounded 0.7 percent after a two-day decline.

Elsewhere, the STOXX Europe 600 rose 0.6 percent and the MSCI Asia Pacific Index rose 0.3 percent.

Chris Beauchamp, chief market analyst at IG, suggested that there “will be plenty of dip buyers out there who have been waiting for a pullback”.

Still, many investors think that the US stock market is overvalued. A recent survey from Bank of America Merrill Lynch showed that a record net 44 percent of fund managers polled believe stocks are too expensive, up from a net 37 percent last month.