So says Bill Gross
Tobin's Q is low ...
... and is approaching lows it has hit since 1900. (Sorry, the graph only goes to 2001.)
PEs are also low.
My transgenerational stock market outlook is this: stocks are cheap when valued within the context of a financed-based economy once dominated by leverage, cheap financing, and even lower corporate tax rates. That world, however, is in our past not our future. More regulation, lower leverage, higher taxes, and a lack of entrepreneurial testosterone are what we must get used to – that and a government checkbook that allows for healing, but crowds the private sector into an awkward and less productive corner.
Perhaps. We'll see.