Stock and Bond Markets Remain Overvalued – October 2016

The average of four fundamental valuation measures shows a market nearly two standard deviations (82%) above its historical norm:

Source: Advisor Perspectives, October 6, 2016

Remember, asset price inflation (speculative return) contributes a very small amount towards total return over the long haul. Since 2012, however, speculative returns have been in the double digits while long-lasting fundamental returns have been minimal:

Source: Bogle eblog