- We’re in an Ice Age of deleveraging and remain in the top quintile of historical cyclically adjusted valuations.
- Schiller bottoms out at 7-8 times earnings, which equates to 450 on the S&P
- High quality equities are becoming attractive, especially in Europe, but many other “cheap assets” remain too risky
- ECB has time to fix; fund EFSF, which then imposes conditionality
Full Video: FT.com
Last month History Squared linked to the Grice/BBC interview.