Stocks Still Look Overvalued Despite Bear Market, Raising Concerns About Future Returns
-
The "everything bubble" of 2021 has deflated, but stocks still look overvalued according to Ned Davis Research.
-
Valuation metrics show stocks are still priced at extremes that suggest future returns could be underwhelming.
-
Even after the 2022 bear market, stocks appear overvalued compared to the attractive bond yields.
-
Households remain overweight in stocks and underweight in real estate, bonds, and cash based on historical averages.
-
If households reduce their stock exposure, valuations could fall further as money shifts to other assets.