Anybody else follow the Shiller P/E ratio (CAPE ratio) and/or the Buffett Indicator, and give either metric much credence? Shiller P/E ratio is currently around 42. Do y'all expect it to get over 45, maybe even over 50, before the next big bear market (whenever it may come)? Buffett Indicator (ratio of total stock market cap to annualized GDP) is over 200%... do you think the broader bull market, the one that began in 2009, will continue for many more years?
Do you change your portfolio allocation based on the relative valuation of the overall stock market, or do you try to maintain a fixed allocation to stocks regardless of overall market valuation?