By historic fundamental measures Stanley Druckenmiller thinks that stock prices are extremely high.
The metric he points to is market capitalization to GDP.
While he says the price-to-earnings ratio of the market looks reasonable at about 17 times, he also notes that we have record margins.
Despite all of this he thinks stock prices should be high given the most aggressive Federal Reserve policy ever.
Druckenmiller thinks the Fed should act sooner rather than later on raising rates because we are just going to continue to add leverage to the system which will make the eventual end result worse.
