Stocks Are Overvalued
Since we have now been in a cyclical downturn, the traditional P/E comparing the stock price just to the latest year's earnings makes stocks look even more overvalued.
On the other hand, interest rates are relatively low now. But since that is largely a result of weak growth prospects, that may not justify high stock prices. An example of this is the case of Japan. Japan has had long term bond yields of 1 to 2% for more than a decade, yet stock prices there have kept falling because of weak Japanese growth.