Probably my all time favourite valuation measure is the Shiller PE ratio as it takes 10 years of earnings into the equation thus smoothing outlier years. According to this measure we are at 40 which is the second highest valuation of all time.
What is nice to look at is the current rally to see how it stacks compared to other post bear market rallies. As you can see this is nothing special. A bear market is considered a 20% drawdown. I think the main reason why this new all time high feels so crazy is due to the fact that we have been rallying since 2009.
The market is getting pretty excited with all the wage inflation and the skills shortages be careful what you wish for.
Keep your eyes on the Bitcoin price I think we will make new all time highs before the week is out.
I have lots more to say I will be back either today or tomorrow with more details as my routine is out of place at the moment.