Think stocks are overpriced? Think again.

Think stocks are overpriced? Think again.

By Paul Price

High interest rates justified extremely low P/Es in the late 1970's - early 1980's. When investors could get as high as 15%  - 18% on insured bank CDs, they had little appetite for stock market risk.

Today, with near-zero interest (ZIRP) available on CDs, bonds and money markets, P/E multiples should be greater than average. 

Instead the forward multiple is barely above the long-term average.  Relative to fixed income, stocks are still cheap.