so first the one thing that we are
always talking about here do you think
the stock market is overvalued I don't
think the stock market is particularly
overvalued it's clearly trading above
the long-term average but that doesn't
necessarily mean that the market is
significantly overvalued a few points to
make first and foremost is US equities
continue to trade cheap to bonds now you
look at the earnings yield of stocks
compared to the Treasury yield it's not
clear that there's an alternative to
owning the equity markets what worries
people is that they remember the late
1990s and they have this recency bias
and believe that if stocks have been
going up for this long then we must be
facing some sort of bubble the reality
is if you look at the top ten names of
the NASDAQ stocks in 1999 the median
price to sales was over 20 times today
that number on the top 10 names in
Nasdaq the median price of sales is
closer to 5 times so that's 1/4 of the
valuations that you had at the height of
the tech bubble so yes stocks are
somewhat above their long-term average
that should be expected when the global
economy is growing and policies
accommodative we're nowhere near that
point of significant concern yet
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