In recent months, I've used a wide variety of analytical methods (discounted cash flows, normalized earnings, price/peak earnings calculations, etc) to show that stocks are currently priced to deliver unusually poor long-term returns – stated simply, the U.S. stock market is more overvalued than at any point in history except during the late 1990's bubble.
It's worth reading the rest of that column, for Dr. Hussman's skeptical take on the Fed Model, and the conventional wisdom about the relationship between interest rates and stock valuations.
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