Citigroup’s chief U.S. equity strategist Tobias Levkovich on the (cautious) case for buying stocks at current valuations:
…Yet, as we have shown in the past, the longer-term argument for equities versus the alleged stored value of gold seems quite forceful at its current deviation (see Figure 1). Indeed, the chart shows just how out of favour equities are. But that was also the case in the early 1980s and we prefer to learn from history rather than repeat it.
Presenting 126 years of the S&P 500, priced in gold: