Lets steer away from the K5 bashing and talk about what is going to happen in the future. Things going to change in a few months? I think K5 might have been better off by adding a few months to his prediction...
I am very worried about US valuations - they are getting to the level where you need to back off.
So I am moving some of my money and my clients money to cheaper countries - italy, austria, spain, argentina, israel, ireland. But most countries are matererially cheaper than the US.
Emerging markets will probably be the best place to be for 5-10 yr money. almost cheap and they are growing.
the thing is, the world economy is doing fine - the question is how much of it is artificially pumped by artificially low interest rates.
I'll be in stocks until they fall below the 200 or 300 day moving averages, then I'll sell.
I'm still overweight stocks - if you usually have a 60/40 stock/bond mix, I'll do 70/30 now or even 75/25. Bonds just stink right now.