According to the textbook, if a wave of pessimism cause stocks to become generally overvalue, the best investment strategy is to

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The best investment strategy in a scenario where stocks are generally overvalued due to a wave of pessimism is to continue to diversify your investment portfolio. This means spreading your investments across a range of asset classes, such as stocks, bonds, and real estate, to reduce the risks of any one sector having a significant impact on your overall portfolio. By doing this, you minimize your exposure to the potential volatility of stocks, while also positioning yourself to take advantage of other investment opportunities that may arise.

According to the Textbook, If a Wave of Pessimism Cause