The corporate bond market is significantly overvalued with spreads at historically tight levels, presenting a high risk for investors.

“The morning sorry, you know, US corporate bond index, that's our proxy for investment grade corporate bonds. You know, Titan 10 basis points. I think it hit 71 basis points. You know, intra quarter, that is the tightest it's ever been. Let me repeat that. Tightest it's ever been”

Current market valuations are high, requiring investors to be cautious and avoid passive index investing.

“So, you have to be careful. And we warn people if you're just buying index S&P 500, be very careful.”

Current market valuation metrics like the Schiller PE ratio and price-to-sales ratio indicate that the market is at an extreme top.

“We're at about a 39 on the Schiller PE ratio. We're at about a 3.3 on the S&P price to sales ratios. These are indications of extreme tops where you should be absolutely nervous.”

Market valuations of company mergers are frequently manipulated and unreliable predictors of long-term profitability.

“My argument would be that share prices are not a good estimate. That they are essentially rigged. That they reflect the power of big business in cahoots with big finance, sometimes central banks, often government, the power to manipulate share prices.”

Market valuations are inherently subjective opinions and are likely to be inaccurate, though this is not a significant concern compared to institutional biases.

“In fact, I would go further. I think markets are probably wrong at all times. The issue in terms of market capitalizations or in terms of market valuation, these are basically opinions that people form in real time all the time.”