“How To Know When To Sell An Overvalued Stock | FAST Graphs”
$UNPBearish
UNP is risky to hold at high valuations due to volatility and potential underperformance despite good company results.
Then here's Union Pacific. Once it got overvalued, you're holding it through periods where you'd have made almost no money, but then you had this rally again. But the question is, are you psychologically fit or strong enough to take this kind of volatility and be able to hold the stock comfortably?
Bottom line is you're taking a lot of risk at these high valuations. You're taking a risk that even if the company does good, you won't.