So says John Hussman, here:
Valuations remain unusually rich on our measures . . . it should be of some concern (though it is clearly not) that the price/revenue multiple of the S&P 500 is now above any level seen prior to the late-1990’s market bubble. Prior to that time, the highest post-war peaks were in 1965 (which was not followed by a deep or immediate decline, but marked the onset of what would ultimately become a 17-year secular bear market), and 1972, just before the S&P 500 lost nearly half of its value.
The Shiller p/e bears him out (esp. the post-war peak on January 1, 1966 at 24.06 vs. nearly 23 today, and the post-war nadir of 6.64 in July/August 1982, a 72 percent decline in valuation over the course of the secular bear and the mother of all buying opportunities since the war):
The price for performance remains steep.
