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Is This Market Undervalued, Overly-Complacent ... Or Both?

They may be right. There's nothing to stop stocks from moving higher. But is that the conclusion of a cynical realist, or an apologist for a bull market that's probably "long in the tooth"? A recent Forbes article, citing Standard & Poors' Chief Investment Strategist, Sam Stovall, took the bullish S&P earnings yield case down a peg, noting that "the current rate environment is artificial ... yield levels are lower than during similar historical periods."

One can argue that the stock market is reasonably, even attractively, valued based on certain valuation metrics. However, should the equity market's earnings yield be considered alluring when it towers above a Treasury bond yield that has been "artificially" compressed by central bankers? That's a question that every self-described value investor will have to contend with during the fleeting months of 2013.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Brian Egger is the founder, publisher and gaming and travel analyst of BreakingCall.com. During the last twenty years, he has held positions of increasing responsibility as a gaming, lodging and travel analyst at Goldman Sachs, Donaldson Lufkin Jenrette, Credit Suisse, BMO Capital Markets and Topeka Capital Markets. He also served as Associate Director of Research at BMO and Director of Research at the Institutional Research Group. Brian has held four team positions, including two second-place rankings, in Institutional Investor's Gaming, Lodging and Leisure categories. He has also been recognized as a six-time Wall Street Journal "Best on the Street" analyst. Brian taught securities analysis to MBA students as an Adjunct Professor in the Finance department of Columbia Business School. He received a BSE from the Wharton School of the University of Pennsylvania and an MBA from the University of Chicago Booth School of Business.
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