Beware people. US stocks are very over valued historically. Right now, the CAPE ratio for the S&P 500 stands at 38.7. That means stock prices are very expensive, relative to earnings. “Right now, the U.S. stock market is trading at more than double the post-World War II average price-to-earnings ratio,” said Randy Bruns, a certified financial planner in Naperville, Illinois.
Also, when back tested to 1970, the Buffett Indicator has averaged a reading of 85%, which is to say that the aggregate value of all stocks has averaged about 85% of U.S. GDP spanning 55 years. In recent trading sessions, this ratio has pushed above 213%, equating to a roughly 151% premium to its mean since 1970.
And Goldman Sachs is recommending value stocks with decent dividends.