Stocks are not "really cheap".
The Shiller p/e ratio is at 21.90 as of yesterday, 33.3 percent elevated off the mean of 16.43.
Stocks weren't even "really cheap" in March 2009 when the Shiller p/e ratio dipped dramatically to 13.32. Which is not to say stocks weren't "on sale" then. They certainly were, compared to the mean now, but that was barely a 19 percent discount.
"Really cheap" is rare in market history, say a Shiller p/e of 6.64 in 1982, or 4.78 in 1920, or 5.56 in 1932. Compared to the mean today, a Shiller p/e of 5 represents something like a sale of nearly 70 percent off.
Now that's "really cheap".
