Robert Prechter on CNBC:
"I think valuations are still very high. The yield on the S&P is about 2.2%, it should be more than double that. It's still more than two times book value, that's twice as high as it should be. People point to earnings, but you know they fudge the earnings so much, they were the worst indicator to look at anyway. And now you can barely compare the data to old data so I don't even use earnings...(lol, makes sense)"
"Back in 2000 and 2007 guess what we had, record earnings both times. Now were those good times to sell stocks or buy them? They were great times to sell stocks. Record earnings tend to occur a few months or even quarters after the high..."
|Data source: multpl.com using Yale Economics Professor Robert Shiller's data|
He recommends safety.