The price-to-earnings of stocks and other fundamentals have improved radically, John Bogle, founder of
Bogle added: The value of the U.S. stock market was $18 trillion a year ago, and now its about $9.5 trillion, or lets call it $10 trillion with todays rally. Anyone who believes that American business is worth $8 trillion less than it was a year ago, I think, is a fool.
That said, Bogle believes stocks were overvalued before the credit crisis hit. So, there was some hot air in the system, he continued. We blew it out, but I think we have overblown it.