[_uy6i]

While I’m not bullish I think markets are now closer to fairly valued than extreme over valuation, on a Schiller PE basis we are somewhere between the 5 and 10 year trailing averages, the 20 year average puts you at 25.9x which is a 12% drop from here. Sure the 40 year average is at 23.8x but if you used that as a gauge of fair value the only time you would have been below that was the depths of the financial crisis.