While the Nasdaq is performing well, most other stock markets remain lower than the beginning of the year. The higher the Shiller PE, the more overvalued a stock market index appears to be. Another way to assess a stock market's valuation is by analyzing the bond yield versus the stock market's earning yield ratio. Based on this formula, in contrast to the Shiller PE, stock prices appear cheaper today than they were a decade ago. Therefore, using both approaches, investors can view today's stock markets as both expensive AND cheap.

Source: CBC News July 12, 2020 15:00 UTC