The chart below shows the Q ratio, which is another tool to measure the price of stocks in regards to being overvalued or undervalued. The chart shows points of extreme undervaluation (1948, 1982), which coincided with the beginning of the next major bull market in stocks. These points are usually when investors also have the most bearish sentiment.
As you can see by the chart above, the only time stocks were more expensive in history was during the few years of the dot com mania.
Stocks are currently more expensive than the peak of the stock market bubble in 1929, just prior to the great crash and great depression.
Can stocks go higher from here?
Absolutely they can.
Do I want any part of the market?
No thank you. I would rather sit on the side lines, watch the mania unfold and wait for stocks to become inexpensive, which they will again, just as sure as the ocean will go back out to sea.