That’s the age-old question and one that we are in no position to answer.  We simply live by the iron law of investing: stocks for the long run.

But this chart in the WSJ yesterday gave us pause. The PE ratio for stocks is the second highest that it’s been in fifty years.

The WSJ calls these high price to earnings ratios in “nose bleed territory.”

PE ratios always seemed a bit backwards looking to us – after all, every start-up begins with a PE ratio of infinity.

But for what it’s worth, smarter people than us, like Nobel prize winner Robert Shiller swear by it.