SPDR S&P 500 (SPY)

[Slim6]

Stocks are about 120% overvalued. CAPE PE ratio typically should be 12-18, but earnings are decreasing compared to prior year for most stocks. PE over 22 is very risky. Right now, we are seeing Cyclically Adjust PE ratio (CAPE) at 37. This is extremely bearish, and 60% drop is coming (and even after 60% drop, stock markets would still be overvalued).