Are US Stocks Overvalued?

Sheridan Porter Blog

Since Q4 2013 the market demonstrated the accuracy of FEV by continuing to rise. Now, as Q1 2015 draws to a close, the FEV market premium of the S&P 500 has risen to 23.6% above the index’s historical median.
While this means that stocks are overvalued, it is pertinent to note that current highs are not near the record premium of close to 50% measured during the dotcom bubble.
If the economy continues to strengthen, market fundamentals (FEV) may catch up with prices. If not, a correction may ensue.
Where do you think the market is headed?