“Stocks valuations remain remarkably high, but as valuations alone tell us little or nothing in terms of market timing, it seems valuation concerns are increasingly ignored. That said, if individual stock valuations are largely unhelpful for timing markets, their correlation with future (one year forward or more) returns is relatively good. Today's levels infer paltry low single digit future returns if we use history as our guide. Just to get back to average US enterprise values would need a 30% fall from here. Surely that should still be a concern?” writes Andrew Lapthrone of SG (who works near Albert Edwards so don't be surprised when their views chime).
See John Hussman, James Montier (note the debate amongst GMO staff from my reading on it) and Albert Edwards on more on this theme.
This is for information and debate, not necessarily my view (plus what do I know about macro? Give me healthcare or sustainablity queries at will ! )