re: market thoughts...bubble?

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Only twice in history has the shiller pe ratio for the s&p 500 been as high as it is now: dot com bubble and the months leading up to black Tuesday (start of the depression). I've switched from buying equities as of late and started targeting bonds, as the yields are looking better and better each day. I'm not sure if a pullback is coming, but the market is certainly overvalued compared to historical trends.

My thesis is one of three things will happen: a) earnings will rise faster than price, justifying current valuations, b) there will be a pullback, or c) current valuations will become the new normal. I'm not dumping equities at this point, but I'm definitely in wait and see mode.

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You and I have similar thoughts here. The only thing I would add is that earnings would have to rise a whole hell of a lot faster than they have been in order to catch up with price. If current valuations become the new normal, I'm a happy human .