The stock market is in good shape for the long run as measure by earnings yield and their main competitor Bonds yields. The ratio between the 2 is about 2:1 for every unit of risk free return there is a 2 units of reward in the stock market making stocks a better choice in the long run.
But what will be the cost of investing for the long run at this precise time?
Investor looking to enter the market now are paying a risk of at elast 7% drawdown since the market in the short term has run too fast relative to interest rates and earnings.
The market is selling at a 7% premium or risk of over valuation with an extreme posiiblity to drop to or about 10 to 11% before it continue on the way up since the market as measure by the S&P 500 is still a long way to face risk of a 20 to 50 percent drop or correction.