The valuation is out of this world high for russell 2000. It is even higher than in the DOTCOM days or the credit bubble days! It is unprecedented! It has NEVER been this over valued before! Any idea when this massive bubble will go bust?
equity valuation levels need to be judged versus interest rates. As long as they stay low equity valuations will be high. Especially with precious metals and real estate in trouble. There just isn't anywhere else to put money and there is a lot of it. Plus it looks like this scenario is going to continue on a global basis. Low growth, high unemployment and low interest rates. I don't think there is going to be a crash. If there is a significant event that causes a large correction it will be time to buy if rates stay low. IMHO
I don't know. I've learned you can never predict the market. All we can know is that stocks, and in particular the Russell 2000, are incredibly overpriced. I would wager 10 years from now the Russell will be around the current level, but in between I have no idea what will happen.