This is clearly similar to what GuruFocus Shiller P/E page looks like. Shiller P/E ratio is updated daily. Today it sits at 20.1, which is 22.6% higher than the historical mean of 16.4, implying a future market return of 3.8% a year.
But Steven Romick is seeing opportunities in large cap high quality companies. He thinks that those companies have higher return on capital, and with relatively low valuations.
With bonds, Steven Romick looks the spread between Merrill Lynch High Yield Index vs. average of 5 & 10 year US Treasury yields. His slide is below:
Currently he is not yet excited with bonds, as he generally looks for better yield.
These are the links to the complete set of his slides and the audio record of the conference call:
Steven Romick mentioned that a few years ago he was a one-man shop. Today he has a team of 10 analysts. A disclosure here, when he was a one-man shop, Steven Romick was a Premium Member of GuruFocus.
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