Inflation and the US equity market

Conventional valuation criteria show the US equity market is more expensively rated than at any time in modern history. This raises several issues, the main one being whether such an extraordinary period of stock market activity can be expected to last for much longer. Will those who called the top of the market back in 1996 or 1997 or 1998 be vindicated finally by a bear market of mighty proportions? More to the point is whether there has been a fundamental change in the equity market? Conventional valuation criteria, which have been relied upon traditionally as a guide to timing entry...