Author argues S&P 500 valuations are extremely stretched using Buffett Indicator and CAPE.
Unpriced research observations (excluded from Calls and Returns):
SPX — AVOID The author argues that the S&P 500 is historically overvalued, citing a Buffett Indicator of 233%, a CAPE ratio of 40x, and mean reversion 2.38 standard deviations above trend. These extreme valuations imply poor forward returns or a coming correction, so investors should avoid the index. Exact non-equity contract requires separate historical validation; no generic proxy.
And that's just the overall S&P 500 view without going into the nonsensically extreme valuations of many individual stocks underneath the surface.