Valuation Schmaluation
Here's what jumps out at me from the updated Valuation Worksheet: US stocks are dead-on "fair value" based on historical price-to-earnings ratios. In fact even while harshing one's buzz with S&P's stingy "core earnings" estimates, we see a P/E ratio below the average since 1960. So even if one is really concerned that earnings quality significantly deteriorated during the long bull run of the 80s-90s, as S&P was when it formulated core earnings, one needn't really have concerns about the level of US stock valuations, because even when earnings are stripped the the bone, stocks are looking pretty fairly priced.
Alan Greenspan is concerned about the price levels of global assets, though, because of a "liquidity glut." Gee, where did that come from? This guy is just too much.
I am reminded of nothing so much as his school-marmish finger-waggings to Congress over the massive federal budget deficit, the very budget deficit he helped create with his relentless championing of the irresponsible Bush tax cuts.