In our blog post Don’t Panic Over CAPE, we reference a strong rebuttal to the notion that stocks are signficantly overpriced relative to historic norms by Philosophical Economics.
Particularly interesting to me were “The Big Three” drivers of Bull and Bear markets. War, High Inflation and Financial Panics are the triggers of sudden valuation collapses. Peace, Low Inflation and Economic Stability are the foundations of Bull markets. Clearly, “The Big Three” favor equities ahead.