Buffett is irrelevant as a stock timing indicator; he has no choice but to talk his book.

There is very good evidence based on long-term Q ratio, smoothed PE, price regressions, and mkt cap / GNP metrics that the market just reached FAIR VALUE in March of 2009, and that stocks have essentially been in bubble territory since 1994, with the exception of the few months near the bottom of the 08/09 bear.

Low interest rates and QE are the ONLY driver of current bubble valuations, and when the music stops stocks are going to endure another protracted bear market for a decade or more to correct the current excesses.

Those who insist on using irrelevant metrics like TTM PE or forward operating PE to value stocks have been deluded by the biggest sales machine on earth – the Wall Street Complex. We’ve probably borrowed 20 years of future returns to push prices to these levels.