The Chart below is a nice comparison of relative valuations for stocks vs. bonds. You can see in 1982 when the 30+ years Bull Market began (for both stocks and bonds) how significantly under-valued stocks were and significantly over-valued they became in 2000 at the peak of the Dot-Com boom. Since March 2009, both stocks and bonds have been doing well. Both bonds and Stocks are considered to be over-valued, but a bubble in stocks, who knows?
“Some analysts argue that we don’t have a stock market bubble because the S&P 500 earnings yield remains above US corporate bond yields.” (WSJ-The Daily Shot 10AUG2017)
Source: Capital Economics, WSJ The Daily Shot 10AUG2017
Sotheby’s (BID) Chart 09AUG2017 – down 10pct+ since July 31 when IAV first published the Bubble Indicator…
Nikkei Bubble 1990 / Dot-Com Bubble 2000 / Asset Bubble 2007/08 / Sotheby’s Specific Problems 2013-15 / Now?