Clarium Capital doesn’t think so.  According to a recent note, Clarium says the stock market is likely severely overvalued considering the average negative liquidity trough PE of 11.1.  That implies the stock market should be at roughly 640.  Even more disturbing, Clarium stresses that a deflationary negative liquidity environment, such as the one we are in, is much more dangerous than your average negative liquidity environment and tends to overshoot to the downside in terms of PE.  That would imply a stock market value of 370. Yesterday’s close: 857. Yikes….