The S&P 500’s recent record high and 165%-plus rise from its March 2009 lows have sparked fears of an equity Bubble similar to the late 1990s.  We disagree.  Large cap stocks were more than 100% overvalued in 2000 and about 25% above trend before the crash of 2008.  Gains since 2009 have reversed the 2008 market collapse and large cap stocks are about 5-10% above their long-term trend.  The primary implications of large cap stocks returning to trend is lower return expectations and slightly elevated downside risks, in our view.  

David Fuller's view

Here is Michael Jones' report.

While cautious, this is a long way from some of the alarmist and possibly self-serving forecasts that have made the rounds recently. 

So what does Michael Jones actually like? Basically, what he calls “developed international stocks”.  These would include large companies, not least the multinational Autonomies, from Europe to Japan and other developed nations of Asia, plus Australia.  These are generally trading on lower valuations than their US counterparts and their currencies are also trading at more competitive rates.