According to Bloomberg, Nobel Prize-winning economist, Robert Shiller, says he is not buying stocks at present:
….One factor that makes him cautious on American shares is the S&P 500’s cyclically-adjusted price-earnings ratio: While the metric is still about 30 percent below its high in 2000, it shows stocks are almost as expensive now as they were on the eve of the 1929 crash.
“The market is way over-priced,’’ he says. “It’s not as intellectual as people would think, or as economists would have you believe.’’
Robert Shiller’s CAPE compares current prices to a 10-year moving average of inflation-adjusted earnings. That is likely to be distorted by losses incurred in 2009 which are more of a (hopefully) once-in-a-generation event.